Paul Scully debates involving the Department for Business, Energy and Industrial Strategy during the 2019 Parliament

Wed 3rd Jun 2020
Corporate Insolvency and Governance Bill
Commons Chamber

2nd reading & 2nd reading & 2nd reading: House of Commons & 2nd reading

Oral Answers to Questions

Paul Scully Excerpts
Tuesday 10th November 2020

(3 years, 5 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Yvette Cooper Portrait Yvette Cooper (Normanton, Pontefract and Castleford) (Lab)
- Hansard - - - Excerpts

What recent discussions he has had with the Chancellor of the Exchequer on providing additional support to businesses affected by covid-19 lockdown restrictions in the run up to Christmas.

Paul Scully Portrait The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)
- Hansard - -

The Secretary of State works closely with the Chancellor, and I and my officials have had regular engagement with the Treasury. I recently met the Financial Secretary to the Treasury to discuss ongoing financial support.

We have announced additional cash grants and extensions to the job retention scheme and existing loan schemes.

Yvette Cooper Portrait Yvette Cooper
- Hansard - - - Excerpts

Pubs and high street shops are particularly hard hit by losing pre-Christmas takings. The Minister will know that it is also the hospitality and retail sectors that are most at risk from accelerating automation, which will affect jobs. What will he do to work with those sectors on sector-specific plans to prevent the double whammy of covid and automation affecting jobs, so that our pubs and high street shops can be open?

Paul Scully Portrait Paul Scully
- Hansard - -

The right hon. Lady raises a really important point. As well as having regular meetings with the hospitality and retail sectors about the immediate future, we also have the Retail Sector Council and the Hospitality Futures Group, an industry-led a group, which we participate in fully to make sure that we can address such long-term concerns.

Bill Esterson Portrait Bill Esterson (Sefton Central) (Lab)
- Hansard - - - Excerpts

What recent assessment he has made of which business sectors have been most affected by the covid-19 outbreak.

--- Later in debate ---
Virendra Sharma Portrait Mr Virendra Sharma (Ealing, Southall) (Lab)
- Hansard - - - Excerpts

What steps his Department is taking to reduce the use of dismiss and re-engage tactics by employers.

Paul Scully Portrait The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)
- Hansard - -

Employers must have the flexibility to offer different terms and conditions. However, using threats about firing and rehiring as a negotiating tactic is unacceptable. The Government are working with ACAS to convene a roundtable of business organisations and employee representatives to discuss these issues.

Anna McMorrin Portrait Anna McMorrin
- Hansard - - - Excerpts

Earlier this year, I joined workers and trade unions across Cardiff North to stand up to businesses behaving badly. People are struggling to grapple with the uncertainties of life under covid, yet some businesses are still using fire and rehire tactics to undermine pay and working conditions to line their own pockets. Will the Government stop the dithering and delay, outlaw these bad practices and protect workers’ rights?

Paul Scully Portrait Paul Scully
- Hansard - -

I understand the enormous impact of losing a job, or even of a job being threatened. We expect all employers to treat employees fairly and respectfully, but businesses in real financial difficulty do need the flexibility to offer new terms and conditions to save as many jobs as they can.

Kim Johnson Portrait Kim Johnson
- Hansard - - - Excerpts

Increasingly, rogue bosses such as British Airways, Centrica and ESS are using the covid crisis to cut pay and terms and conditions and are exploiting the legal loophole to fire and rehire loyal staff. With many workers now facing an impossible choice between losing pay or losing their job, will the Minister explain how these scandalous tactics can possibly be legal in the first place, and will he legislate to outlaw them—yes or no?

Paul Scully Portrait Paul Scully
- Hansard - -

It is a commercial matter, but businesses do need flexibility with regard to terms and conditions—both for them and their employees—to protect jobs. We expect all employers to treat employees fairly and in the spirit of partnership. The very threat of fire and rehire is totally unacceptable, and we hope that all the businesses cited will reach a negotiated outcome with their employees.

Virendra Sharma Portrait Mr Virendra Sharma [V]
- Hansard - - - Excerpts

I hope that the Minister will give a more open and clear response to my question. Heathrow airport is pushing staff to strike—a measure that garnered support in a ballot ending last week. Its behaviour now amounts to bullying. Staff are being summoned to meetings before the consultation is finished and without support. Will the Secretary of State say that this is wrong, condemn this behaviour and agree that this business has relied on the support of the community, who are owed something back in these troubled times?

Paul Scully Portrait Paul Scully
- Hansard - -

I know how important Heathrow and the airlines sector is to the hon. Gentleman’s constituents, which is why we put so much support into that sector. I come back to the fact that we expect all employers to treat employees fairly and respectfully, no matter what job, what position and what community they live in.

Drew Hendry Portrait Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)
- Hansard - - - Excerpts

The hon. Gentleman is a Minister in government. He has repeatedly called this unacceptable. A number of his colleagues have called out companies such as British Airways that have shamefully used fire and rehire tactics. The Chief Secretary to the Treasury called it

“a practice that all of us in the House would condemn.”—[Official Report, 13 October 2020; Vol. 682, c. 168.]

The Prime Minister said that he was looking at what we can do. People are fed up with this Government’s warm words and no intention of action, so let us hear it today: does the Minister support the aims of the Bill introduced by my hon. Friend the Member for Paisley and Renfrewshire North (Gavin Newlands), and will he support it?

Paul Scully Portrait Paul Scully
- Hansard - -

We will address and respond to the Bill when it comes before us. We have to reach the balance between protecting jobs and allowing employers who are in difficulty to have the necessary flexibility. We are one of the most flexible employment countries in the developed world, and we want to remain so, but we do want to make sure that businesses have their responsibilities and use those responsibilities wisely.

Alan Whitehead Portrait Dr Alan Whitehead (Southampton, Test) (Lab)
- Hansard - - - Excerpts

Surely the Minister must understand that fire and rehire tactics are not part of a negotiating tactic: they are a gun to the head of every worker in the organisation. It has nothing to do with negotiation: it says, “You will accept lower terms—otherwise we will chuck you out.” British Gas has recently become one of a number of large companies threatening their workforces in this way with this medieval tactic. I think the Minister must agree that it is not only a terrible way to reward the thousands of energy workers who have worked day and night to keep our energy supply constant and reliable during the covid crisis, but must be seen as a completely unacceptable way to conduct industrial negotiations. Will he join me in condemning the use of this practice and, specifically, write to British Gas demanding that it withdraw its threats to its employees?

Paul Scully Portrait Paul Scully
- Hansard - -

In my first answer on this subject, I talked about the fact that we believe that making threats about firing and rehiring as a negotiating tactic is totally unacceptable. I hope that the situation with Centrica will be satisfactorily resolved both for employers and employees. However, it is important to retain the flexible labour markets where we remain 11th out of 140 countries with regard to the ease of hiring and, indeed, firing workers to make sure that we can protect important sectors across this country.

Beth Winter Portrait Beth Winter (Cynon Valley) (Lab) [V]
- Hansard - - - Excerpts

British Gas has put a halt on its fire and rehire plans, but only until the beginning of next year, and workers, many of whom are my constituents, are not optimistic. Centrica plc, British Gas’s parent company, reported profits of £900 million this year. Does the Minister agree that it is morally indefensible for workers to be expected to accept a reduction in their pay and conditions when shareholders still enjoy dividends, and if so, what steps will he take to ensure that workers are protected from these underhand tactics?

Paul Scully Portrait Paul Scully
- Hansard - -

I talked about using threats in terms of negotiation. Employers need to treat employees fairly and in a spirit of partnership. I therefore hope that Centrica will reach a negotiated outcome with employees.

Liz Twist Portrait Liz Twist (Blaydon) (Lab)
- Hansard - - - Excerpts

What recent discussions he has had with representatives from the retail sector on the effect of the covid-19 outbreak on that sector.

Paul Scully Portrait The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)
- Hansard - -

I have regular discussions on the effect of covid-19 with a range of retail reps. Next month, I will co-chair a meeting of the Retail Sector Council. There has been unprecedented support, including within the £200 billion of Government support for the retail sector, but clearly we must work closely with it at all times.

Liz Twist Portrait Liz Twist
- Hansard - - - Excerpts

Retail sector employment is a huge part of employment in my constituency of Blaydon, from huge centres like the Metrocentre to independent retailers across the whole constituency. With all but essential shops now closed for a second time, what further practical support are the Government giving to those businesses struggling to pay their rent, and their other bills, as a result of the covid crisis?

Paul Scully Portrait Paul Scully
- Hansard - -

We have extended the moratorium until the end of the year and will continue to work with tenants. This week, I had a roundtable with a ministerial colleague in the Ministry of Housing, Communities and Local Government. We will work with tenants and landlords to come up with a fair solution for retailers across this country to protect our high streets and our retail areas.

--- Later in debate ---
Tonia Antoniazzi Portrait Tonia Antoniazzi (Gower) (Lab)
- Hansard - - - Excerpts

The Post Office Horizon scandal may well be the largest miscarriage of justice in our history, with over 900 false prosecutions destroying lives, families and reputations. Does the Minister agree that a judge-led inquiry into the scandal is the only way many sub-postmasters will be satisfied?

Paul Scully Portrait The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)
- Hansard - -

That is exactly why we appointed Sir Wyn Williams, a former judge, to lead the inquiry. I really hope that representatives of the sub-postmasters will take time to meet him, in order to become familiar with his approach. He has outlined his engagement strategy and we really want to see justice and answers as soon as possible.

Ben Everitt Portrait Ben Everitt (Milton Keynes North) (Con)
- Hansard - - - Excerpts

In August, I was lucky enough to meet Dynamic Imaging Analytics in Milton Keynes—a fantastic local company that is doing some really cool stuff with space technology, including working with our local university, the Open University, to mine for water on the moon. Perhaps the Minister will join me in congratulating the Open University on its recent successes on that.

Oral Answers to Questions

Paul Scully Excerpts
Tuesday 29th September 2020

(3 years, 7 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Jeff Smith Portrait Jeff Smith (Manchester, Withington) (Lab)
- Hansard - - - Excerpts

What recent discussions he has had with representatives from those business sectors most affected by the covid-19 outbreak.

Paul Scully Portrait The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)
- Hansard - -

Ministerial colleagues and I have engaged closely with affected sectors throughout the covid-19 pandemic. Recently, I have had meetings with representatives of the retail, hospitality, consumer goods, weddings, nightclubs and events sectors, and small and medium-sized enterprises across the UK.

Emma Lewell-Buck Portrait Mrs Lewell-Buck [V]
- Hansard - - - Excerpts

I thank the Minister for his response, but it is simply not good enough. My local pubs, bars, restaurants, theatres and taxi drivers were already fighting for their survival. The introduction of an arbitrary and unevidenced 10 pm curfew has led one of my constituents, Stephen Sullivan, who runs Ziggy’s in South Shields, to say, “I simply can’t see a way forward. There is no way out for my business.” When on earth will the Government abolish this curfew?

Paul Scully Portrait Paul Scully
- Hansard - -

I am sorry that the hon. Member does not feel that speaking to 3,000 or 4,000 businesses over the past few months to understand their issues is good enough. None the less, I understand the concern of the hospitality sector and other sectors in South Shields in particular, where there are local restrictions. It is so important that we get the economy up and running as soon as we can. The Government’s first priority is to save lives, but to save businesses and livelihoods is just as important.

Ellie Reeves Portrait Ellie Reeves [V]
- Hansard - - - Excerpts

I am proud of my many constituents who work in the creative industries, such as musicians, actors, producers and designers, to name but a few. Making ends meet in this sector can be difficult at the best of times, but it is now even more precarious as many businesses will not yet be able to reopen. What plans does the Minister have to ensure that workers in creative industry, including permanent, freelance, self-employed and those previously excluded, can receive financial support in the tough months ahead?

Paul Scully Portrait Paul Scully
- Hansard - -

That is something that I continue to engage with the Treasury and with businesses on, to understand it and to see what more we can do. I am someone who has in the past been a company director and paid myself through dividends, so I understand the position of those in the creative sector, who are doing much the same thing. We will work together to see what more we can do.

Jeff Smith Portrait Jeff Smith
- Hansard - - - Excerpts

I used to work in the nightclub industry, like 70,000 people in the UK. Clubs are currently shut down on Government advice and are getting no support on rent, rates or other overheads. Loans are no good because they are just building up the debt. These are businesses that will be not just viable, but thriving businesses and good employers if they can get through the covid shutdown. What are the Government going to do to help them to get through this crisis?

Paul Scully Portrait Paul Scully
- Hansard - -

I have met nightclub representatives and people who run nightclubs. I have met with Sacha Lord and other people who work with the elected mayors. We have set up a nightclub taskforce to work with the Night Time Industries Association and other owners to try to work our way to a covid-19-secure nightclub, when we can start to open up the economy. Many nightclubs have actually repurposed to be able to open as bars and other areas of industry.

Drew Hendry Portrait Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)
- Hansard - - - Excerpts

The Minister says he understands, but it beggars belief that his Government still refuse to support businesses that were vibrant and viable. Workers, freelancers, creatives and the newly self-employed have been hung out to dry. Government sources now predict that all pubs, restaurants and bars will be ordered to close for two weeks initially. Without furlough and restricted by curfew, why is he creating another class of the excluded?

Paul Scully Portrait Paul Scully
- Hansard - -

I am not sure where the Government sources are coming from. As I say, lives are absolutely first in our priorities; we are trying to make sure that we can stop the transmission of this virus. We want to keep the economy open, which is why we have put measures in place so that, although they are hampered because they cannot trade fully, pubs, restaurants and other sectors can stay open at this time.

Drew Hendry Portrait Drew Hendry
- Hansard - - - Excerpts

The Government will not provide grants to struggling firms, they are giving a pittance to the self-employed and they are replacing furlough with a scheme that excludes businesses closing on health grounds. They are incentivising the rest to cut staff, with 3 million already thrown to the wolves and more to come. Did the Minister demand that the Chancellor introduce an emergency Budget to save the excluded? If not, is it not the case that his role is simply not viable?

Paul Scully Portrait Paul Scully
- Hansard - -

The Government have put in £160 billion-worth of support, wrapping our arms around as much of the economy as we can. We have put off business rates for these businesses. We have extended the VAT cut for another few months for the hospitality sector in particular. We will continue to see what more we can do to keep our economy open.

Lucy Powell Portrait Lucy Powell (Manchester Central) (Lab/Co-op)
- Hansard - - - Excerpts

I am afraid that talking and engagement is all well and good, but what we need is some action. Does the Minister think that Deer Park in Devon, which was fully booked for weddings next year, or the conference business in Manchester, which was 90% booked for next year, are unviable businesses? The Government have thrown those and thousands of other thriving businesses on the scrapheap this week—businesses that were very much viable and will be so again when the restrictions are lifted. They have taken the loans. They will not qualify for the job support scheme. They were promised that track and trace would allow them to reopen, yet the Government have now turned their back on them. The Conservatives are no longer the party of business. As a very small measure, will the Minister reallocate the cash grant underspend to ensure that we do not see thousands of businesses go bust on his watch?

Paul Scully Portrait Paul Scully
- Hansard - -

We have handed out £11 billion-worth of cash grants to businesses across the country. In terms of the underspend, the under-allocation varied by local authorities and how much money they could get to those businesses, which is why we need to have it in to reconcile. I work with the wedding sector. At the moment it is impossible to work through a system that makes it viable for those businesses to open beyond a certain number. However, they will be viable businesses in the future.

Neale Hanvey Portrait Neale Hanvey (Kirkcaldy and Cowdenbeath) (SNP)
- Hansard - - - Excerpts

What recent discussions he has had with (a) Cabinet colleagues and (b) the Scottish Government on the economic effect on businesses of the UK Internal Market Bill.

Paul Scully Portrait The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)
- Hansard - -

Ministers have clearly set out the benefits to all UK businesses of ensuring that goods and services can flow freely across the UK. That is in Scotland’s interests, given that it exports more to the rest of the UK than to the EU. The hon. Gentleman will have noticed that I have spent about 12 hours on these Benches with the Minister of State, Cabinet Office, my hon. Friend the Member for Norwich North (Chloe Smith), having discussions and debating this issue.

Neale Hanvey Portrait Neale Hanvey [V]
- Hansard - - - Excerpts

Businesses in my Kirkcaldy and Cowdenbeath constituency and across Scotland benefit from not only the most competitive business rates regime in the UK but vital schemes such as the transition training fund, the inward investment scheme and a half-billion pound infrastructure plan. With the internal market Bill allowing UK Ministers to spend in devolved areas, what guarantees can the Minister give that such expenditure will not result in a consequential reduction in essential Scottish Government funding, putting such schemes at risk?

Paul Scully Portrait Paul Scully
- Hansard - -

Spending from the UK Government will be complementary to that coming from the Scottish Government. We want to add to that and to make sure that the UK economy can flourish. Scottish business will be at risk without the regulatory certainty of this Bill, so we want to prevent additional layers of complexity.

Paula Barker Portrait Paula Barker (Liverpool, Wavertree) (Lab)
- Hansard - - - Excerpts

What steps he is taking to support (a) the Mersey tidal project and (b) other new jobs and environmentally sustainable energy production on Merseyside.

--- Later in debate ---
Jessica Morden Portrait Jessica Morden (Newport East) (Lab)
- Hansard - - - Excerpts

What steps his Department is taking to ensure that employers do not use unfair and discriminatory practices when selecting people for redundancy.

Paul Scully Portrait The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)
- Hansard - -

Any discrimination when selecting people for redundancy would be not only wrong, but unlawful. Employees with the necessary qualifying service can bring a claim to an employment tribunal where they believe that they have been unfairly selected for redundancy.

Jessica Morden Portrait Jessica Morden
- Hansard - - - Excerpts

Citizens Advice research shows that one worker in six is facing redundancy and that parents and carers of those who have shielded are twice as likely to be made redundant. Will the Minister now provide additional emergency resources to enforcement bodies to ensure that people are treated fairly, equally and safely during this extremely worrying time?

Paul Scully Portrait Paul Scully
- Hansard - -

We work closely with the enforcement body to make sure that it can do its job and we resource it accordingly. We are also looking to the long term to see what more we can do for better enforcement in these matters.

Paul Blomfield Portrait Paul Blomfield (Sheffield Central) (Lab)
- Hansard - - - Excerpts

What assessment he has made of the potential effect on employment levels of closing the coronavirus job retention scheme.

Oral Answers to Questions

Paul Scully Excerpts
Tuesday 21st July 2020

(3 years, 9 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Kate Osborne Portrait Kate Osborne (Jarrow) (Lab)
- Hansard - - - Excerpts

What steps he is taking to support sub-postmasters affected by the Horizon post office scandal.

Paul Scully Portrait The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)
- Hansard - -

The independent review of Horizon will provide a public summary of the failings that occurred at Post Office Ltd, which I hope will give postmasters the answers that they have been seeking all these years. It will also ensure that lessons are learned for the future.

Kate Osborne Portrait Kate Osborne
- Hansard - - - Excerpts

Last month, the Government announced an independent review of the Post Office’s Horizon IT system scandal that led to hundreds of postmasters being fired, many going bankrupt and others even being imprisoned. The Post Office Horizon scandal will go down as one of the biggest civil injustices ever. To restore public confidence and bring justice to the many lives ruined, it is vital that each individual case is assessed and that rightful compensation is paid to all those affected. A judge-led public inquiry is the only answer; will the Minister commit to that now?

Paul Scully Portrait Paul Scully
- Hansard - -

I am grateful to the hon. Lady for her question and her continued highlighting of the sub-postmasters’ situation. I hope to announce the chair of the review very soon so that we can start on it at pace in September.

Chi Onwurah Portrait Chi Onwurah (Newcastle upon Tyne Central) (Lab)
- Hansard - - - Excerpts

The Post Office Horizon scandal is one of the biggest miscarriages of justice of our times: 20 years of reputations ruined, families torn apart and lives lost. Sub-postmasters were betrayed by a Post Office that so persecuted them that what compensation they have won has largely gone on legal fees, and they have now turned to the parliamentary ombudsman to investigate the full costs of a Government that failed

“to undertake its statutory duty of oversight”.

As we break for our summer holidays, will the Minister finally do the right thing and commit to a full, judge-led inquiry that will get to the bottom of the wrongs suffered and deliver both justice and compensation?

Paul Scully Portrait Paul Scully
- Hansard - -

The chairman or woman of the review will be announced in due course so that we can start the review of this injustice in September at pace. It is important that we speak to the Post Office, the Government, the sub-postmasters and other people, including at Fujitsu, to get to the bottom of this matter so that we can learn the lessons and move forward for the sub-postmasters of the future.

Gavin Robinson Portrait Gavin Robinson (Belfast East) (DUP)
- Hansard - - - Excerpts

What support he plans to provide to the aerospace sector.

--- Later in debate ---
Catherine West Portrait Catherine West (Hornsey and Wood Green) (Lab)
- Hansard - - - Excerpts

What support his Department is providing to (a) the beauty sector and (b) other sectors that remain fully or partially locked down as a result of social distancing measures.

Paul Scully Portrait The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)
- Hansard - -

Further to the Prime Minister’s announcement on 17 July, I am delighted that all close contact services will be able to resume from 1 August. We have taken a phased, cautious approach to reopening our economy, guided by the scientific and medical advice.

Catherine West Portrait Catherine West
- Hansard - - - Excerpts

The close contact sector of the theatre is the one that I want to ask about, Minister. What action can the Government take to support local theatres such as Jacksons Lane, Upstairs at the Gatehouse and the Park Theatre? My constituents work in those theatres and, sadly, redundancy notices are going out. What can be done to save these jobs and protect another highly skilled sector?

Paul Scully Portrait Paul Scully
- Hansard - -

I totally understand, as Minister for London, that many theatres in the middle of London also require that support, but for provincial theatres around the country, we really do need to make sure that we can attract audiences back. That is why we are looking forward to working with theatre groups to have pilots for events so that when they are able to open, people can come safely and enjoy the performances that they have to offer.

Suzanne Webb Portrait Suzanne Webb (Stourbridge) (Con)
- Hansard - - - Excerpts

What support his Department is providing to the retail and hospitality sectors as covid-19 lockdown restrictions are eased.

--- Later in debate ---
Andy Slaughter Portrait Andy Slaughter (Hammersmith) (Lab)
- Hansard - - - Excerpts

What steps he is taking to help the events sector recover from the covid-19 pandemic.

Paul Scully Portrait The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)
- Hansard - -

As the Prime Minister announced last week, from 1 October the Government intend to allow audiences to return to stadiums around the country. Conferences and other business events can also recommence in a covid-19 secure way, subject to the outcome of pilots.

Andy Slaughter Portrait Andy Slaughter
- Hansard - - - Excerpts

The Government are really missing the point on this. The thing about events, meetings, conferences, exhibitions and wedding receptions is that they are organised and regulated, and yet they are more constrained at the moment than pubs and restaurants. Rather than talk about pilots and permitted venues that are not defined in the guidance, will the Government look at a faster and fuller opening of the sector before October?

Paul Scully Portrait Paul Scully
- Hansard - -

We took evidence from a number of areas, including the wedding industry, and we have the “Safer Events: A Framework for Action” White Paper. All those people will feed into that discussion. Weddings are essentially parties, and we need to ensure that they can be regulated in a covid-19-secure way. I will meet the wedding industry associations again tomorrow to continue discussions in this area.

Oral Answers to Questions

Paul Scully Excerpts
Tuesday 16th June 2020

(3 years, 10 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Marion Fellows Portrait Marion Fellows (Motherwell and Wishaw) (SNP)
- Hansard - - - Excerpts

What steps he is taking to support the sustainability of the post office network.

Paul Scully Portrait The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)
- Hansard - -

The Government recognise the critical role that post offices play in communities across the UK. This is why the Government have committed to safeguard the post office network by investing over £2 billion between 2010 and 2018, and a further £370 million from April 2018 to March 2021. I regularly meet with the Post Office to find innovative steps to secure network sustainability and the continuity of services across the UK.

Marion Fellows Portrait Marion Fellows [V]
- Hansard - - - Excerpts

I thank the Minister for his answer, but during the covid-19 pandemic, when sub-postmasters have proved just how essential they are to our communities, many are handing in their keys as they struggle to make a living, leaving communities without vital services. Pre-covid Post Office figures show that Scotland is still being hardest-hit by the postmaster crisis, with the highest number of closed branches in the UK, increasing by 17% since last year. Notwithstanding what the Minister has just said, in the 2020 spending review, will Ministers agree to maintain or increase the Government subsidy to post offices, to ensure that communities can access a post office branch, or will they continue putting the Post Office on a pathway to privatisation?

Paul Scully Portrait Paul Scully
- Hansard - -

The Post Office is obviously made up of small businesses, which are subject to the same problems as any, and Scotland, with its rural nature, has been affected. That is why we look to temporary post offices and outreach. But clearly, going forward, the Government will reflect the value of postmasters and the post office network in all their deliberations.

Chi Onwurah Portrait Chi Onwurah (Newcastle upon Tyne Central) (Lab)
- Hansard - - - Excerpts

Last week, the House united in calling for a judge-led inquiry into the Post Office Horizon scandal—hundreds of lives ruined and innocent people imprisoned by a trusted public institution—except the Minister, who proposes a forward-looking independent review, which will not mention managerial or ministerial accountability, Fujitsu’s responsibility or the key question of compensation. Now the Justice For Subpostmasters Alliance is refusing to co-operate, saying it does not believe that the review will get to the bottom of one of the greatest miscarriages of justice of our times. After all that those people have endured, will the Minister not listen to them and commit to a judge-led inquiry?

Paul Scully Portrait Paul Scully
- Hansard - -

The hon. Lady is mistaken if she believes that the review does not look at the managerial responsibility of all the people responsible for what has happened, and we need to listen to the postmasters’ rebuke. Indeed, yesterday I discussed the matter in a meeting with chief executive Nick Read and Calum Greenhow, chief exec of the National Federation of Subpostmasters. Nick Read committed fully to the review, leaving no stone unturned, which is why I hope that with everyone coming together I can encourage postmasters to engage in the review so that we can get the answers they and the hon. Lady are looking for, to secure the redress and the answers that they need.

Chris Green Portrait Chris Green (Bolton West) (Con)
- Hansard - - - Excerpts

What steps his Department is taking to support businesses during the covid-19 outbreak.

--- Later in debate ---
Tanmanjeet Singh Dhesi Portrait Mr Tanmanjeet Singh Dhesi (Slough) (Lab)
- Hansard - - - Excerpts

What discussions he has had with the Secretary of State for Housing, Communities and Local Government on the effect of the covid-19 outbreak on businesses trading on the high street.

Paul Scully Portrait The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)
- Hansard - -

My Department has regular discussions with Housing, Communities and Local Government colleagues on the impact of covid-19 on high street businesses. We have provided unprecedented support to high street businesses. Pubs, shops, and hotels will pay no business rates for 12 months; eligible retail, hospitality and leisure businesses have received cash grants of up to £25,000; and businesses that cannot pay their rent because of coronavirus will be protected from eviction.

Kate Osborne Portrait Kate Osborne
- Hansard - - - Excerpts

Businesses across my constituency continue to report the major challenges that have been present since the start of lockdown, particularly a loss of income, mounting debts, enforced closure, insurance policies not paying out, the need to make redundancies, and an inability to plan for the future given the uncertainty of the current situation. Although many non-essential businesses have reopened this week, it will still be a long road to recovery, so will the Secretary of State review the grant scheme to ensure support for our high street businesses that are doing the right thing but could be decimated by covid-19?

Paul Scully Portrait Paul Scully
- Hansard - -

One of the reasons we launched the £617 million discretionary fund was so that we can reach more businesses, but clearly we need to reopen safely non-essential retail, as started yesterday. We need to monitor that. We need to make sure that opening up our economy is the best way, along with the flexible support that we are giving, to make sure that it can start to bounce back, including in Jarrow.

Tanmanjeet Singh Dhesi Portrait Mr Dhesi
- Hansard - - - Excerpts

Economically, my constituency has been especially hard hit by the coronavirus crisis, with almost 19,000 employees having been furloughed. But while some businesses have been able to gain access to Government grants and schemes, numerous independent and family-run businesses have not been able to do so and have fallen between the cracks of Government support. Will the Minister urgently review the Government grant and loan schemes, particularly for our high street businesses, so that they too can benefit from them and our towns do not become ghost towns, or mere carbon copies, because we would then lose our much loved independent businesses?

Paul Scully Portrait Paul Scully
- Hansard - -

The hon. Gentleman is absolutely right to highlight the plight of independent businesses. That is why I was pleased to go to Northcote Road in Clapham to see what they were doing there and the community spirit that brings them together. We always look at the flexibility of support, but we will also make sure, with the safe opening of shops now, that the new normal is coupled with a future view of the high street—the new reality, with changing behaviour of consumers—so that in the years to come independent shopkeepers can sustain and indeed thrive as local businesses on the high street.

Lindsay Hoyle Portrait Mr Speaker
- Hansard - - - Excerpts

We now go to marvellous Manchester, with Lucy Powell.

Lucy Powell Portrait Lucy Powell (Manchester Central) (Lab/Co-op) [V]
- Hansard - - - Excerpts

May I, too, put on the record my remembrance of my good friend Jo Cox?

Pubs, cafés, hairdressers and restaurants are the lifeblood of our high streets. Business-critical guidance about their reopening in just two and a half weeks’ time was due yesterday but is nowhere to be seen. Instead, they got another review, making a bad situation much worse. When will they get that guidance? With either 1-metre or 2-metre distancing, most of those businesses still will not be viable, so will the Government finally recognise that vital business support schemes need to follow the public health measures before we see large-scale job losses and the decimation of our high streets?

Paul Scully Portrait Paul Scully
- Hansard - -

As you will see from my hairstyle, Mr Speaker, I am desperately awaiting the opening of hairdressers and barbers too. It is key that we get this right, though. The economic impetus from the hospitality sector in particular is made apparent to me every single day that I speak to its representatives; indeed, I will be speaking to a lot of them later this afternoon. We have to make sure we get that right, with the confidence of customers coming back. The Government’s first priority is to save lives and to work with the scientific guidance. At the moment, when people go out to shop at the businesses that are open today, 2 metres is still the rule, but we will get further guidance as soon as we practicably can.

Barry Sheerman Portrait Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
- Hansard - - - Excerpts

What steps he is taking to ensure that Chinese investment in UK businesses does not undermine UK intellectual property.

--- Later in debate ---
Kim Johnson Portrait Kim Johnson (Liverpool, Riverside) (Lab)
- Hansard - - - Excerpts

What recent discussions he has had with representatives from the hospitality sector on the effect of the covid-19 outbreak on that sector.

Paul Scully Portrait The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)
- Hansard - -

I have met regularly with a large number of representatives of hospitality organisations to discuss the issues that they are experiencing, including through the BEIS ministerial taskforce on pubs and restaurants and my own weekly call with sector representatives, the next of which is this afternoon.

Gill Furniss Portrait Gill Furniss [V]
- Hansard - - - Excerpts

I, too, record that my thoughts are with Jo Cox’s family today.

The hospitality sector has faced an unprecedented challenge due to coronavirus, which has had an impact on many businesses in my constituency of Sheffield, Brightside and Hillsborough. At the start of the outbreak, the Prime Minister said that he would do whatever it takes to support individuals and businesses. Will the Government therefore extend the full furlough scheme to ensure that the hospitality sector survives and workers in the industry do not add to the shocking unemployment figures released today, and, ultimately, to protect our communities from a further spike of this terrible virus?

Paul Scully Portrait Paul Scully
- Hansard - -

Indeed, Sheffield City Council has paid £87 million to 7,329 business premises. We have provided an unprecedented package of financial support to businesses in the hospitality sector. We continue to work with them. We continue to extend the furlough system and make it flexible, in order to have part-time furloughing, so that people can start to come back to work. It is important, however, that we get the guidance out so that we can work with the hospitality sector to get it to reopened, so that it can start to bounce back.

Jeff Smith Portrait Jeff Smith
- Hansard - - - Excerpts

Rumours are swirling about whether, how and which pubs will be able to reopen on 4 July. The brewing industry urgently needs clarity on whether it will be all pubs or just those with gardens. The Minister just said that the guidance will be available as soon as possible, but that is not good enough. We are two and a bit weeks away. Beer needs to be brewed. Some of us need a pint. When will that guidance be available? The brewing industry and pubs need that clarity urgently.

Paul Scully Portrait Paul Scully
- Hansard - -

It is not only that we need a pint. For pubs, it is about not just coming back for the opening, but making sure that it is an enjoyable experience for people, so they keep on coming back. That is what will allow them to survive and thrive, so it is important that we get the guidance out. I am trying to work with the hospitality sector and pubs to make sure that there are as few surprises as possible, but we need to make sure that we are weighing that up with the scientific guidance so that pub people, clients and people who want a pint know that they can go into a pub safely.

Kim Johnson Portrait Kim Johnson
- Hansard - - - Excerpts

I send my condolences to the family of Jo Cox.

Workers in the hospitality industry are heading for a crisis. It has been one of the worst-hit sectors by the virus, with a disproportionate number of young, low-paid and insecure workers. My constituency of Liverpool, Riverside has an estimated 11,700 employees furloughed who are employed by small family-run businesses, many of which do not qualify for grant support because they are outside the £51,000 rateable value. Will the Secretary of State fix the loans, extend the grants and plan for recovery to ensure that support for the hospitality sector?

Paul Scully Portrait Paul Scully
- Hansard - -

It is time for me to add my voice to that of Members across the House expressing their condolences to the loved ones of Jo Cox and, indeed, wishing a swift recovery to the hon. Member for East Dunbartonshire (Amy Callaghan). That was horrific news, and I hope that she is back on her feet as soon as possible.

Liverpool City Council, which I have spoken to, has handed out £87,885,000 to businesses, including small businesses and those in the retail and hospitality sector. That is why I was pleased to be able to extend the discretionary scheme to capture more of the businesses that fell short. I know that Liverpool City Council has an economic recovery plan, in addition to “Liverpool Without Walls”, to encourage pubs and restaurants to open safely. That will help young people especially to get back into employment and get our economy up and running.

David Evennett Portrait Sir David Evennett (Bexleyheath and Crayford) (Con)
- Hansard - - - Excerpts

What steps his Department is taking to support start-up businesses.

Paul Scully Portrait The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)
- Hansard - -

We want to make the UK the best place to start and grow a business, and it should not matter where in the UK that is. The start-up loans programme has helped more people to realise their dream of starting a business, with more than 72,000 loans, worth £591 million, since 2012. During 2018-19, our growth hubs helped more than 9,500 business starts in England, and through programmes operated by the Government-backed British Business Bank we are currently supporting more than £7.7 billion of finance to more than 94,900 small and medium- sized enterprises.

David Evennett Portrait Sir David Evennett [V]
- Hansard - - - Excerpts

Start-up businesses are vital to our economic recovery. What more can the Government do to help the very smallest businesses access the right finance quickly to survive during and post covid-19?

Paul Scully Portrait Paul Scully
- Hansard - -

I pay tribute to my right hon. Friend for the work that he has done with small businesses for many years, including when we were working with businesses together. I know that he continues that work. As part of the package of covid-19 recovery measures we created the bounce-back loans scheme, which targets small and microbusinesses in all sectors, providing loans from £2,000 up to 25% of the business’s turnover, with a maximum loan of £50,000. Applications are done via a simple online form. As of 7 June, 782,246 loans, worth £23.78 billion, have been approved.

Stuart Anderson Portrait Stuart Anderson (Wolverhampton South West) (Con)
- Hansard - - - Excerpts

What steps he is taking to support independent pubs during the covid-19 outbreak.

--- Later in debate ---
Holly Mumby-Croft Portrait Holly Mumby-Croft (Scunthorpe) (Con)
- Hansard - - - Excerpts

What progress his Department has made on undertaking a review of the Post Office IT system.

Paul Scully Portrait The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)
- Hansard - -

On 10 June, the Government announced an independent review to consider whether the Post Office has learned the necessary lessons from the Horizon trial judgments and to provide an independent and external assessment of its work to rebuild its relationship with its postmasters. We are keen to see the review launch as soon as possible, and we are in the process of identifying a chair to lead the work of the review in order to get the answers that we need and to hear those voices.

Holly Mumby-Croft Portrait Holly Mumby-Croft
- Hansard - - - Excerpts

I welcome that answer and the Government’s commitment to the review. Is the Minister aware of any support for postmasters and postmistresses while the situation is ongoing?

Paul Scully Portrait Paul Scully
- Hansard - -

The December 2019 settlement comprised a comprehensive settlement of £57.75 million. The Post Office has opened a historical shortfall scheme for postmasters who were not part of the group litigation and who want shortfall issues recorded in Horizon to be investigated and addressed. Many convicted claimants are going through a further process with the Criminal Cases Review Commission, with 47 referred to the Court of Appeal. Where convictions are overturned, processes are in place for them to receive compensation if appropriate.

Corporate Insolvency and Governance Bill

Paul Scully Excerpts
Paul Scully Portrait The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)
- Hansard - -

May I first welcome the hon. Member for Manchester Central (Lucy Powell) to her place? I thank her and the shadow Secretary of State, the right hon. Member for Doncaster North (Edward Miliband), for the engaging way in which they have spoken to officials. That has expedited the passage of this legislation, and our discussions—including with the SNP spokesman, the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) —have been particularly fruitful.

Unfortunately, I cannot respond to every question in the short time available to me now, but I hope that we will pick up some of these discussions during the next stages of the Bill. I thank all right hon. and hon. Members who have spoken for their contributions to the debate, not least, as has been mentioned, the excellent maiden speech of my hon. Friend the Member for Heywood and Middleton (Chris Clarkson). May I add my happy birthday regards to Win Page? My hon. Friend talked about the fact that the general election seemed a long time ago, and made the point about the Olde Boar’s Head—and a haircut for me as well—so congratulations.

As was mentioned by my hon. Friend the Member for Rugby (Mark Pawsey), the Institute of Directors and the Federation of Small Businesses have been incredibly supportive of the measures in this Bill. We welcome that support. It will help businesses that are struggling with the effects of the covid-19 crisis and lay the foundations for economic recovery in the UK. The insolvency reforms in the Bill will provide vital and urgent support for businesses to help them through the period of instability and to help them recover from the impact of covid-19 as the economy fully emerges from this crisis.

Chris Bryant Portrait Chris Bryant (Rhondda) (Lab)
- Hansard - - - Excerpts

On a point of order, Madam Deputy Speaker.

--- Later in debate ---
Eleanor Laing Portrait Madam Deputy Speaker
- Hansard - - - Excerpts

I am guessing that it could well be timely, but the Minister has a very limited time in which to speak, and he should finish his speech first. Then I will take the hon. Gentleman’s point of order.

Paul Scully Portrait Paul Scully
- Hansard - -

Thank you, Madam Deputy Speaker.

The corporate restructuring package in particular will be of immediate help to companies in financial distress, which need further regulatory tools to help them recover. This Bill provides that. It will enable UK companies undergoing a rescue or restructuring process to continue trading, giving them breathing space that could help them avoid insolvency. I want to reassure right hon. and hon. Members that the temporary changes to insolvency law that are necessary to help businesses get through this unprecedented period will consider very carefully any case for further extensions to these powers, and they will be subject to the full scrutiny of the House.

The temporary prohibition on creditors filing statutory demands and winding-up petitions for covid-19-related debts will support the Government’s programme to help companies survive the covid-19 emergency. It will temporarily remove the threat of statutory demands and winding-up petitions being issued against otherwise viable companies by creditors not following the Government’s advice to show forbearance at this time.

Furthermore, temporarily removing the threat of personal liability for wrongful trading from directors who tried to keep their companies afloat throughout this emergency will encourage directors to continue to use their best efforts to trade during this uncertain time. The governance measures will provide temporary flexibilities on meetings and filings at a time when businesses are coping with reduced resources and restrictions due to social distancing measures.

Let me quickly address a couple of points made by the right hon. Member for Doncaster North. First, he is completely correct to say that, although there will be a temporary suspension of wrongful trading liability, directors will still have legal duties under wider company law. Those duties will remain in place, as will measures under insolvency law to penalise directors who abuse their position. I understand the suggestion of the right hon. Gentleman and the hon. Member for Inverness, Nairn, Badenoch and Strathspey that the temporary insolvency measures should be extended to 30 September 2020. At present, all the temporary insolvency measures will automatically sunset a month after Royal Assent. I can reassure them, though, that the Bill contains provisions enabling those temporary measures to be extended by statutory instrument where appropriate. The Government have every intention of making use of those provisions if the protections are needed beyond their present expiry date. It is a truly fluid situation and we do not want provisions to be in place for longer than is necessary.

The temporary measures all have significant impacts on the normal working of the business community, and the case for extending the measures will need to be considered against those impacts. Any extension should rightly be scrutinised by Parliament, but the Government will not hesitate to extend if that is required.

The right hon. Member for Doncaster North also raised a fair point on the need for employees to be protected in regard to restructuring plans. That point was also raised by my hon. Friend the Member for North East Bedfordshire (Richard Fuller). The aim of these measures is to restore the viability of struggling companies, thereby boosting the economy, saving jobs and protecting long-term investment. Yes, employees could find themselves as creditors in a restructuring plan, but in those circumstances, they will benefit from the same protections that are in place for other creditors and members. This will include the provision that they must be no worse off through the plan than they would otherwise be in the next most likely plan, and it will, of course, take into account their entitlement under employment legislation.

Importantly, a court can refuse to sanction a plan if it is not fair and it is equitable to do so. When making this assessment, one would expect the court to be mindful of the interests of employees in any pension schemes affected by that plan. If a restructuring plan is not agreed, it is worth remembering that the company might enter an insolvency proceeding, which would almost certainly produce a worse outcome overall for all involved. The company might stop trading altogether, which would put all employees at risk of losing their jobs. The Government are in the business of protecting jobs.

The right hon. Member for Doncaster North also raised concerns about CBILS and CLBILS, as well as the bounce-back loans. The Government have listened to helpful feedback on the business interruption loan schemes in recent weeks. That feedback has also shown that the smallest SMEs, some of which have perhaps not used finance in the past, are struggling to get their finance applications approved as quickly as they need, as we heard earlier. That is why the bounce-back loan schemes, which are fast for lenders to process and for businesses to access, have been launched.

On 27 April, the Chancellor announced the new bounce-back loan scheme, which will ensure that the smallest businesses can access up to £50,000 of loans in a matter of days. The scheme went live on 4 May. Businesses can complete a short, simple online application in up to a few hours. Under the scheme, there is no need for lenders to ask for complicated cash-flow forecasts or ask difficult questions about the future, which means those applications can be submitted and processed rapidly. Almost 700,000 have been have already been approved.

I thank my hon. Friends the Members for Wimbledon (Stephen Hammond), for Rugby and for Huntingdon (Mr Djanogly) and the hon. Members for Inverness, Nairn, Badenoch and Strathspey, for Bristol North West (Darren Jones), for Aberavon (Stephen Kinnock) and for North Antrim (Ian Paisley) for their contributions. I should say to my hon. Friend the Member for Wimbledon that the Charity Commission has confirmed that it will look favourably on charities that have been unable to hold their AGMs in the normal way, but asks that they write down their decisions to prove that they have done due diligence in holding a virtual AGM or delaying their AGM.

I applaud the passion of my hon. Friend the Member for North East Bedfordshire in standing up for businesses being able to come out of the recovery, as we motor through, changing gears. We will not go back immediately to how things were in January; we have to work with business and listen to business. I am grateful to all other Members who have spoken today.

These new measures complement the Government’s existing far-reaching economic support package for businesses and workers through this emergency. Today’s debate on these measures reinforces the importance of responding to the concerns of UK businesses and providing them with much-needed support during this difficult time. We are in the midst of a global emergency, in which otherwise economically viable businesses are facing the risk of insolvency because of covid-19. We must protect them as best we can. It is imperative that we act now to support our businesses and do what we can to ensure that they survive, preserve jobs and support future growth. Clearly, our first priority is to protect lives, but restoring livelihoods, protecting businesses and getting the economy motoring is also essential. That is why it is imperative that we act now. The measures in the Bill will provide businesses with the flexibility and breathing space they need to continue trading during this difficult time and support the nation’s economic recovery.

Question put and agreed to.

Bill accordingly read a Second time.

Chris Bryant Portrait Chris Bryant
- Hansard - - - Excerpts

On a point of order, Madam Deputy Speaker. I apologise to the Minister; it was not my intention to be rude to him by interrupting him earlier.

We have gone past seven o’clock, as you will have noticed, Madam Deputy Speaker, which means that the motion in the name of the Leader of the House that pertains to virtual participation in proceedings during the pandemic will—I think this is the Government’s intention—be a “nod or nothing” measure. There can be no debate, and if it is opposed, it therefore falls. I have tabled an amendment and I have no intention of withdrawing it. I would want to contest the motion, and I understand that the amendment would be selected by the Speaker if it were to proceed. It is my understanding that it cannot now proceed. Nobody needs to object; it simply cannot now proceed because it is opposed business. Is that your understanding as well?

Oral Answers to Questions

Paul Scully Excerpts
Tuesday 3rd March 2020

(4 years, 2 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Rob Butler Portrait Rob Butler (Aylesbury) (Con)
- Hansard - - - Excerpts

22. What recent steps he has taken to support small businesses.

Paul Scully Portrait The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)
- Hansard - -

Last month we launched businesssupport.gov.uk, our new website bringing together all Government information available to help businesses start, grow and scale. In my first week, I was delighted to chair the Rose review board, which works with industry leaders to break down the barriers that female entrepreneurs face.

Robbie Moore Portrait Robbie Moore
- Hansard - - - Excerpts

I thank the Minister for his response. Last week my constituents Martin and Deanne Brook proudly opened a brand new post office on Halifax Road in Cross Roads, which they operate in conjunction with their already successful small family business, SMS Workshop Supplies Ltd. What steps are the Government taking to help incentivise small business owners like them to explore the possibility of providing Post Office services as a means of safeguarding the post office network?

Paul Scully Portrait Paul Scully
- Hansard - -

This is about working with Members such as my hon. Friend and coming up with imaginative ways of opening up post offices, including Martin and Deanne’s in their hardware store. It is also important that we take the Post Office’s relationship with postmasters seriously and closely monitor the situation during the legal proceedings that many people are going through and have been through recently. The Post Office, under its new chief executive officer, has since accepted that it got things wrong. He has apologised and said that it aims to re-establish a positive relationship with postmasters. The Department for Business, Energy and Industrial Strategy is working actively with the Post Office on this matter and will hold it to account on its progress. We are also looking into what more needs to be done.[Official Report, 13 March 2020, Vol. 673, c. 4MC.]

Ben Everitt Portrait Ben Everitt
- Hansard - - - Excerpts

In Milton Keynes, we can get our groceries delivered by robot, and I was fortunate last week to meet some of the humans from Starship Technologies who wrangle these robots. What support is my hon. Friend giving to small businesses and start-ups such as Starship Technologies, which are at the forefront of innovative new technology?

Paul Scully Portrait Paul Scully
- Hansard - -

Fortunately, questions are not answered by robot yet, so I am still here. [Interruption.] Well, there is a bit of character and it is less robotic. I believe that 50,000 deliveries have been done by Starship Technologies in Milton Keynes, so that is an excellent example. We need to make sure that small businesses can innovate, scale and grow, and we are supporting them to do so through such schemes as Innovate UK smart grants, tax credits and the annual investment allowances, and through programmes supported by the British Business Bank. Research and development tax credits are the single biggest Government support for business investment in R&D. So far, just over £4.3 billion has been claimed through those tax credits in 2017-18, £2.3 billion of which was claimed through the small and medium-sized enterprise scheme.

Rob Butler Portrait Rob Butler
- Hansard - - - Excerpts

Small businesses in my constituency, including in the village of Stokenchurch, frequently tell me that they find it particularly hard to make a profit on the traditional high street. What can the Minister do to help traditional town centres to thrive, and become commercial and community hubs?

Paul Scully Portrait Paul Scully
- Hansard - -

We want our town centres and high streets, including in Stokenchurch in Aylesbury, to be vibrant community hubs where people can live, shop and use services. To support that, we are delivering a £1 billion future high streets fund, as part of a £3.6 billion towns fund to level up our regions. We are committed to a fundamental review of business rates, which the Treasury will announce in due course.

Rebecca Long Bailey Portrait Rebecca Long Bailey (Salford and Eccles) (Lab)
- Hansard - - - Excerpts

I welcome the Minister and the Secretary of State and his new team to their places. I look forward to our future exchanges.

Last week I visited a café in Calder Valley that, despite having just started trading, has been ruined by relentless flooding. The owners, like the owners of so many small businesses, have received no support from the Government and have been left to repair the damage on their own, at their own cost, with the help of local people. Will the Minister outline to the House what meaningful financial support has been made available to businesses affected by flooding? Will the Government protect such businesses in future by outlining in the Budget an increase in the UK’s capital spend on flood defences to approximately £1 billion a year, as advised by the Environment Agency and the National Infrastructure Commission?

Paul Scully Portrait Paul Scully
- Hansard - -

We have spent £2.6 billion on flooding so far and announced £4 billion in our manifesto. The business recovery grant provides local authorities with funding of £2,500 for severely affected businesses like the café the hon. Lady described. It is important that we support small and medium-sized businesses to recover and help to support local economies.

Rebecca Long Bailey Portrait Rebecca Long Bailey
- Hansard - - - Excerpts

The Minister must acknowledge that that is a paltry amount of support. According to the Federation of Small Businesses, flooding will cost small businesses hundreds of millions of pounds, and thousands cannot find affordable flood insurance. Furthermore, on flood defence the Government have pledged less than half the capital advised—only £450 million a year for the next six years. The Prime Minister refused to hold a Cobra meeting following the floods and he could not even be bothered to visit the flood-affected areas. Is it not the case that the Government’s response to this disaster is yet another example of a part-time Prime Minister failing to provide the leadership that our country needs in a time of crisis?

Paul Scully Portrait Paul Scully
- Hansard - -

The Prime Minister is leading on this situation from the front. He is getting money out the door. As a former small-business owner, I would welcome any visit from the Prime Minister, but what I would welcome more is the money that we are getting out the door on day one to help these businesses.

Drew Hendry Portrait Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)
- Hansard - - - Excerpts

I too welcome the Secretary of State and his new ministerial team to their places.

The UK’s proposals on EU trade negotiations could reduce Scottish GDP by 6.1%, or £1,600 per person. Small businesses, including many in the food sector, simply cannot afford to cope with the prospect of such Mad Max economics. They need help now, so will the Minister join me in calling for a cut to employers’ national insurance, to help them and to help to protect jobs?

Paul Scully Portrait Paul Scully
- Hansard - -

We will see what happens in the Budget. Employment allowance has benefited businesses—including my former business—up and down the country. Businesses want meaningful things in the Budget, rather than platitudes from the Opposition.

Drew Hendry Portrait Drew Hendry
- Hansard - - - Excerpts

That response comes as absolutely no surprise, given the email from a key adviser to the Chancellor leaked at the weekend that said that the food sector “isn’t critically important”. We all remember the Prime Minister’s shocking attitude and use of the F-word in relation to business concerns when he said “F*** business”. It now seems that the Government are doubling down on that and it is “F*** farming” and “F*** fishing.” With the Minister refusing to support businesses in their hour of need, it is clear to all that this Government deserve an F for their economic incompetence.

Paul Scully Portrait Paul Scully
- Hansard - -

To date, the UK Government have committed up to £3.08 billion for city region and growth deals throughout Scotland, Wales and Northern Ireland. Since 2012, the British Business Bank has issued more than 4,200 start-up loans in Scotland, worth more than £32 million in total. That is actual action for businesses.

Derek Thomas Portrait Derek Thomas (St Ives) (Con)
- Hansard - - - Excerpts

I thank the Minister for his commitment to small business. Small businesses in Cornwall, and especially on the Isles of Scilly, face an unprecedented challenge on 1 January as a result of the proposed immigration Bill. Will the Minister work with the Home Office to make sure that small businesses that do not have a workforce in the local area sitting around looking to and able to fill posts are able to carry on doing business next year?

Paul Scully Portrait Paul Scully
- Hansard - -

I happily confirm to my hon. Friend that our new immigration system is flexible, so, yes, we will work with businesses all around the country to ensure that we have the skills that we need to allow businesses to thrive.

Chris Elmore Portrait Chris Elmore (Ogmore) (Lab)
- Hansard - - - Excerpts

For the past two weekends, properties and businesses in the Rhondda Cynon Taff area—I am one of the MPs for that authority area—have seen devastating flooding. Just this week, I was out helping businesses in my constituency find sandbags and pumps from my local authority. The Welsh Government, the Rhondda Cynon Taff council and council leader Andrew Morgan are offering support to small businesses, so if the Minister is to announce additional funding for those businesses that have been impacted, I plead with him not to forget about Welsh small businesses.

Paul Scully Portrait Paul Scully
- Hansard - -

I have already talked about the £2,500 that we have been getting out through that business recovery grant, but we will always look to continue to work with businesses in Wales, Scotland and Northern Ireland as well as in England. It is important, as the hon. Gentleman said, that communities come together, which is why there is support for community economies, ensuring that they can continue to survive and thrive.

Richard Fuller Portrait Richard Fuller (North East Bedfordshire) (Con)
- Hansard - - - Excerpts

My hon. Friend will be a great supporter of small businesses, so will he get off to a fast start by urging the Treasury to scrap its misguided changes to IR35? Those changes are punishing small businesses, with large companies already implementing blanket bans that the Treasury had said in a statement would not yet be implemented, and with the HMRC’s own assessment tool creating confusion, not clarity, for entrepreneurs.

Paul Scully Portrait Paul Scully
- Hansard - -

I am sure the Chancellor will hear that question. As my hon. Friend well knows, that is a matter for the Budget, which is still under review.

Nadia Whittome Portrait Nadia Whittome (Nottingham East) (Lab)
- Hansard - - - Excerpts

8. What steps he has taken to prepare for COP26.

--- Later in debate ---
Mary Robinson Portrait Mary Robinson (Cheadle) (Con)
- Hansard - - - Excerpts

For over 40 years, Jim Hall Sports has been at the heart of Bramhall village. However, the future of the shop is in doubt after Nike’s decision to terminate its supply agreements with smaller independent shops. This follows years of annual rises in the amounts that independent retailers have needed to sell to hold on to their merchandise account. It is a move that is a harbinger of the end of many independent stores in an already pressurised high street market. What discussions has my hon. Friend had with sports giants such as Nike to ensure that Jim Hall’s and other independent sports shops continue to have a future on our high streets?

Paul Scully Portrait The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)
- Hansard - -

I thank my hon. Friend for sticking up for small businesses in her constituency. Large suppliers of consumer products, especially those who are leaders in their field, have a responsibility to treat retailers fairly and transparently, regardless of their size. If they think they are being unfairly treated, they could go to the Competition and Markets Authority. Contractual arrangements are between two private companies. However, we will support our high streets through the towns fund and the establishment of the high street taskforce.

Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
- Hansard - - - Excerpts

Coronavirus is impacting on every aspect of work, from the cost to employers to the cost to workers. The Health Secretary has said that employers should view isolation as sick leave, but the law does not state that. Even if that was so, those on zero-hours contracts and in insecure work are unlikely to have sickness cover, and statutory sick pay does not pay for the first three days, meaning that those with little means have to choose between health and hardship—an issue I raised with the Health Minister a month ago. So what discussions has the Business Secretary had with Cabinet colleagues to ensure that workers are financially protected to stop the risk of spreading coronavirus?

--- Later in debate ---
Theo Clarke Portrait Theo Clarke (Stafford) (Con)
- Hansard - - - Excerpts

T8. As a former small business owner, may I ask the Minister what steps he is taking to enable more women to start and grow their own businesses, to help generate more local jobs in my constituency and across the country?

Paul Scully Portrait Paul Scully
- Hansard - -

I thank my hon. Friend for that question. Last week, I co-chaired the Rose review board, which is overseeing the progress made in delivering on the initiatives from that review. The Treasury has launched the investing in women code, which to date has 22 signatories from across the financial services industry. I look forward to working with my colleagues in government and business to drive forward this important agenda.

Chris Evans Portrait Chris Evans (Islwyn) (Lab/Co-op)
- Hansard - - - Excerpts

Tidal’s Store in my constituency is paying a high amount of business rates—proportionately more than the local retail park down the road—which it says is putting it at a disadvantage. Will the Minister have a word with his Treasury colleagues about reforming business rates for small businesses such as Tidal’s?

Paul Scully Portrait Paul Scully
- Hansard - -

I thank the hon. Gentleman for that question. I know that that is something that exercises high streets up and down the country. The Treasury is looking at this and reviewing business rates as a whole.

Michael Fabricant Portrait Michael Fabricant (Lichfield) (Con)
- Hansard - - - Excerpts

When I was in business years ago, it came to something when Ríkisútvarpið in Iceland and Nederlandse Omroep Stichting in Holland paid quicker than the BBC. What can my hon. Friend do to ensure that large businesses pay smaller businesses quickly and on time?

Paul Scully Portrait Paul Scully
- Hansard - -

I thank my hon. Friend for that question. We will be strengthening the Small Business Commissioner’s powers. We already have a tough approach to large companies that do not comply with the payment practices and reporting duty. We are strengthening and reforming the prompt payment code and moving administration to the Small Business Commissioner. The business basics fund competition encourages SMEs to utilise payment technology and boost productivity, and the winners will be announced in April.

Jamie Stone Portrait Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
- Hansard - - - Excerpts

Local crofters in Melness support the proposal to establish a vertical space launch facility in Sutherland, and they have written to the Prime Minister to tell him that. Does the Secretary of State agree that that would be good for the local economy and that the UK has a huge opportunity in terms of launching satellites for other countries that do not have launch facilities?

--- Later in debate ---
Harriett Baldwin Portrait Harriett Baldwin (West Worcestershire) (Con)
- Hansard - - - Excerpts

Does the Minister agree that one of the best ways to level up the great British high street with the internet would be to allow our high street shops to choose when they open?

Paul Scully Portrait Paul Scully
- Hansard - -

I know that my hon. Friend has looked at extending the hours of the Malvern tourist information centre. The Government have reviewed this issue several times. There are strongly held views on both sides. We believe that the current rules represent a fair compromise between those seeking reduced opening hours and those seeking greater liberalisation.

Sammy Wilson Portrait Sammy Wilson (East Antrim) (DUP)
- Hansard - - - Excerpts

At the same time as the Government have re-announced subsidies for onshore wind, Scottish Forestry has revealed that 13.9 million trees have been cut down for wind farms on its land. Does the Minister share my concern at those acts of economic vandalism? Does he believe that it is in the economic and environmental interests of this country to tear down trees, cut up peatland and erect steel structures on pristine landscapes in the vain hope that we can change the climate?