Enterprise Bill [Lords]

Wendy Morton Excerpts

Wednesday 9th March 2016 Commons Chamber

[Sajid Javid]

I shall carry on for a while. Other Members will want to speak.

Of course, the Bill is about much more than just Sunday trading. It will create an institute for apprenticeships, which will help British businesses to develop the talent that they will need to compete in the years ahead; it supports our deregulation agenda, making it simpler to do business; it addresses the issue of business rates; it will help to release pub landlords from restrictive contracts; and it will give the Green Investment Bank the freedom and flexibility that it needs to grow.

I am particularly proud of the measure that will create a small business commissioner. I have seen for myself, too many times, how hard it is for a small business or sole trader to challenge a larger firm. I have seen how late payments, unfair charges and other obstacles may not just make it harder to do business, but actually drive companies to the wall. The creation of a small business commissioner will make a real difference in tackling such problems, and I am pleased to note that it has widespread support.

[Wendy Morton (Aldridge-Brownhills) (Con)]

Before I entered the House, I had more than 25 years of experience in a small business—in fact, a micro-business. I have previously drawn Members’ attention to my entry in the Register of Members’ Financial Interests. Does the Secretary of State agree that this is exactly the sort of thing that we should be doing for small businesses throughout the country, in order to tackle the real difficulties that they experience as a result of late payments?

[Sajid Javid]

I agree wholeheartedly with my hon. Friend. I think that the measure will make a huge difference. Small businesses are often held back from challenging larger firms, and I hope that it will give many of them the confidence that they need.

--- Later in debate ---

[Amanda Solloway]

With the House’s permission, I will continue discussing the small business commissioner. Under the current system, payment disputes too often cannot be resolved without cases going to court. That costly process is limiting to small businesses and, if pursued, can lead to further financial pressures, making it a barely viable option to small business to have any kind of legal battle.

With my background in retail, I have often seen directly how late payments, often by larger and more robust businesses, can be crippling to small businesses. There may well even be a culture of large firms dragging their heels when it comes to making payments. What those firms disregard is how serious it can be to these small businesses not to make payments on time.

A recent study in Derby found that one in five businesses in the region is a victim of late payments, and that can be crippling.

[Wendy Morton]

These late payments can cripple small businesses. Does my hon. Friend agree that, when businesses are starting up, it can mean the difference between survival or not, and creating jobs or not?

[Amanda Solloway]

Absolutely, and what we need to do to boost our economy is to encourage these small businesses to get established and to flourish.

Therefore, this is an element of our business culture that must change. We must give advice and support to smaller businesses. The role of the small business commissioner will help to facilitate that. If as a country we are to continue to encourage enterprise and the entrepreneurial spirit, we must continue to do all we can to support small businesses and address the concerns and problems that hinder their performance.