Tuesday Volume 619 17 January 2017 No. 92 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Tuesday 17 January 2017 © Parliamentary Copyright House of Commons 2017 This publication may be reproduced under the terms of the Open Parliament licence, which is published at www.parliament.uk/site-information/copyright/. 751 17 JANUARY 2017 752 example, at the autumn statement we announced an House of Commons additional £400 million for the British Business Bank to help growing firms to access finance. Of course, we have Tuesday 17 January 2017 taken a number of other steps, including introducing the seed enterprise investment scheme. The House met at half-past Eleven o’clock Craig Tracey: Does the Financial Secretary agree that independent retail stores, such as Chalk & Linen in my PRAYERS constituency, add greatly to the character and vitality of our towns and high streets, and that the Government should do all they can to support them? [MR SPEAKER in the Chair] Jane Ellison: As a former co-chair of the all-party parliamentary group on retail, I could not agree more Oral Answers to Questions that independent retail, and retail generally, is a vital sector. My hon. Friend is right that we want to support independent retailers on our high streets, which is why, from April, 600,000 of the smallest businesses—occupiers TREASURY of a third of all properties—will not have to pay business rates as part of the £6.7 billion business rates package The Chancellor of the Exchequer was asked— that will kick in over the next few years. I hope that he agrees that that is a helpful bit of support for key local Ayrshire Growth Deal businesses. 1. Patricia Gibson (North Ayrshire and Arran) (SNP): Maria Caulfield: I recently attended my local chamber What discussions he has had with his Cabinet colleagues of commerce’s breakfast meeting in Seaford, and I met on the Ayrshire Growth Deal. [908200] many small businesses that are pleased that the economy is doing so well and is being so expertly led by this The Chief Secretary to the Treasury (Mr David Gauke): Government. However, they have some concerns about We have regular discussions with Cabinet colleagues on the introduction of quarterly tax returns and the impact how the Government can boost growth and productivity that would have on the costs of small businesses. They across Scotland and the UK. The Government are suggest the introduction of a threshold for the smallest discussing city deals for Edinburgh and Stirling, and we businesses. Will the Minister consider that? are looking forward to receiving proposals from the Tay cities. The Government are focused on taking those Jane Ellison: I, too, have a good relationship with my deals forward as we look to agree city deals for all of local chamber of commerce; we get vital feedback from Scotland’s great cities. our chambers of commerce. Of course, we are not introducing quarterly tax returns; my hon. Friend is Patricia Gibson: Would the Chief Secretary to the referring to the “making tax digital” project. Although Treasury agree that the Ayrshire growth deal would the Treasury Committee recently said that the long-term generate investment and create the economic conditions future can, and probably should, be digital, we understand to achieve a step change throughout Ayrshire, an area that we need to look carefully at the consultation responses of huge potential? Will he commit today to working and at the concerns of small businesses. Of course, we actively and constructively with the four Ayrshire MPs, have already exempted a number of the smallest businesses the three Ayrshire local authorities and the Scottish from the threshold, but we are looking carefully at the Government to support the deal, to the benefit of the consultation responses and at the Select Committee’s whole county of Ayrshire? report. Wedo not recognise the figure from the Federation of Small Businesses on the cost, and we have not seen Mr Gauke: Up to this point, growth deals have been the assumptions that underpin it; if I am to address city growth deals and, by definition, have focused on those concerns, seeing those would be helpful. cities. As I said earlier, we have made a lot of progress on all the Scottish cities. Of course, it is open to the Scottish Government to take forward projects to enable Dame Rosie Winterton (Doncaster Central) (Lab): growth in the county of Ayrshire, if they wish to do so. Small businesses in Doncaster face a worrying skills shortage. Will the Minister support those businesses by Small Businesses impressing on her colleagues in the Department for Education the need for a speedy decision on Doncaster’s 2. Craig Tracey (North Warwickshire) (Con): What university technical college, to give the go-ahead for the support the Government are providing to small businesses. money? Will she have a word, please? [908201] Jane Ellison: I am very happy to raise that issue 12. Maria Caulfield (Lewes) (Con): What support the with colleagues. More broadly, the Government Government are providing to small businesses. [908211] absolutely support the skills agenda, which we have made a real priority. If we are to close the productivity The Financial Secretary to the Treasury (Jane Ellison): gap in this country, investing in skills and high-quality The Government absolutely recognise the key role that apprenticeships is clearly key. We have taken a lot of small businesses play in the economy, which is why, for action in that regard. 753 Oral Answers 17 JANUARY 2017 Oral Answers 754 Helen Goodman (Bishop Auckland) (Lab): The most year by 2020-21. That is the largest increase over a useful thing that the Treasury could do for small Parliament since records began in 1979. This includes manufacturers in my constituency would be to announce an industrial strategy challenge fund, which will support an objective of staying in the customs union. Up to collaboration between businesses and the UK’s world- now, the Treasury has been a beacon in saying that it leading science base. That will ensure that the UK wants decisions based on analysis, not on rhetoric and remains an attractive place for business to invest in ideology. Can the Minister assure the House that that is innovative research, and that the next generation of still under consideration? discoveries are made, developed and produced in the UK. Jane Ellison: Again, these are issues that we are looking at carefully; the Chancellor has had a series of roundtable meetings with different sectors and industries Nusrat Ghani: I thank the Minister for his answer. in recent months, as have all of us Ministers. We are Scientifica, one of the largest employers in my constituency, looking carefully at what those detailed issues are. Of won both business of the year and export business of course, much more will be said on this and discussed in the year for 2016 at the British Chambers of Commerce’s the House later today, but we are clear that we want to annual awards. I will be incredibly proud to join Scientifica understand the detailed issues that businesses face so when it opens the London stock exchange in March. that as we move forward to make our future outside the Will he join me in congratulating Scientifica, and will he European Union, we can resolve the practical issues pledge to continue supporting such businesses, which that businesses will face in a way that helps the British export the best of British scientific innovation, collaboration economy. and enterprise to the rest of the world? Mr Alan Mak (Havant) (Con): Access to capital is Mr Gauke: I am delighted to join my hon. Friend in vital for small businesses in my constituency and across congratulating Scientifica, and I am happy to make that the country, and a refusal from a big bank should not pledge. At the spending review, we committed to a be the end of the line. Will the Minister continue to £175 million reinvestment in UK Trade & Investment, support the bank referral scheme, which helps so many now part of the Department for International Trade, to small businesses to access alternative sources of finance? drive UK exports. We remain committed to ensuring that UK exporters receive world-class support. Indeed, Jane Ellison: Absolutely we will. The Government’s as the Prime Minister will make clear today, maintaining finance platform referral policy helps small and medium- the UK as one of the best places in the world for science sized enterprises whose finance applications have been and innovation is a priority for us. declined by their bank to explore alternative options. It requires the major banks to refer SMEs that are rejected for finance—with their permission—to finance platforms. Chi Onwurah (Newcastle upon Tyne Central) (Lab): We can do a range of other things to support the good On Friday, I visited Wirecard, an innovative financial point that my hon. Friend makes. I encourage all Members technology company in the emerging payments sector; with SMEs in their area that have had finance applications it is based in Newcastle. It is concerned that leaving the rejected to refer them to some of these schemes, because European single market, and in particular the passporting they are making a difference. rights, will diminish investment in fintech, an area in which this country leads, and which is growing in Newcastle Mr Alistair Carmichael (Orkney and Shetland) (LD): and the north-east. What reassurance will the Minister Many small businesses in the Northern Isles are in the give Wirecard? tourism sector. Given the Chancellor’sreported comments at the weekend, will the Government look again at the opportunities presented by the tourism industry’sproposals Mr Gauke: As the hon.