Thursday Volume 569 24 October 2013 No. 62 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Thursday 24 October 2013 £5·00 © Parliamentary Copyright House of Commons 2013 This publication may be reproduced under the terms of the Open Parliament licence, which is published at www.parliament.uk/site-information/copyright/. 417 24 OCTOBER 2013 418 Dr Huppert: Arthouse cinemas such as the Cambridge House of Commons Arts Picturehouse are much smaller and completely different from massive chain multiplexes. Despite this, Thursday 24 October 2013 the Competition Commission wants to force the sale of the excellent Cambridge Arts Picturehouse. The Leader The House met at half-past Nine o’clock of the House said in response to a question I asked that “there is no cause for the Competition Commission to seek to PRAYERS intervene”.—[Official Report, 10 October 2013; Vol. 568, c. 314.] Will my right hon. Friend the Business Secretary talk to [MR SPEAKER in the Chair] the Competition Commission and encourage it to work on real local monopolies and not this issue? Vince Cable: As an avid cinema-goer and, indeed, Oral Answers to Questions someone who used to go to that cinema, I have some sympathy with my hon. Friend, but the process is this: BUSINESS, INNOVATION AND SKILLS the Competition Commission has come to a resolution and the next step has to be to go to the Competition Appeal Tribunal. I suggest to my hon. Friend that, since The Secretary of State was asked— the Cambridge law faculty has some of the best minds Small Business in the country, including that of his predecessor, it may want to take on this issue on a pro bono basis. 1. Rehman Chishti (Gillingham and Rainham) (Con): What steps he is taking to support small businesses. Mark Pawsey: Having run a small business, I understand [900668] exactly the burden of regulation that small businesses 3. Nigel Adams (Selby and Ainsty) (Con): What steps have to deal with, and I know how pleased small businesses in Rugby are about the Prime Minister’s commitment to he is taking to support small businesses. [R] [900670] make this Government the first in history to cut the 4. Dr Julian Huppert (Cambridge) (LD): What steps overall amount of regulation. Will the Secretary of he is taking to support small businesses. [900671] State confirm that his Department will lead the efforts to cut burdens that hold back small businesses from 14. Mark Pawsey (Rugby) (Con): What steps he is growing and taking on more staff? taking to support small businesses. [900686] Vince Cable: We are totally committed to that task. The Secretary of State for Business, Innovation and Under the red tape challenge—the one in, two out Skills (Vince Cable): We are doing more than ever to system that my colleague the Minister of State, Department support small business. More than 7,000 start-up loans for Business, Innovation and Skills, the right hon. Member have been drawn down since the scheme’s launch in for Sevenoaks (Michael Fallon) is leading admirably—we September 2012. Over the past year, UK Trade & estimate that we have probably already saved business Investment has helped 31,800 businesses to export, the about £1 billion a year, and there is a commitment to growth accelerator scheme has supported more than extend that process. 9,000 small businesses, and the regional growth fund has helped a further 3,000. Mr David Hanson (Delyn) (Lab): What discussions Rehman Chishti: I am grateful to the Secretary of has the Secretary of State had with his Government State for that answer. Will he clarify how many businesses colleagues about the impact of energy prices on small have been backed by the Government’s start-up loan businesses? Does he support the Prime Minister’s call scheme, and are there any plans to extend it further? for a cut in green taxes? Does he support the call by my right hon. Friend the Member for Doncaster North Vince Cable: We estimate that something of the order (Edward Miliband) for a price freeze? Does he support of 7,000 start-up loans have been drawn down since the Sir John Major’s call for a windfall tax? Or is he in scheme’s launch in September 2012, a significant number favour of doing nothing at all? of them in the hon. Gentleman’s constituency. To sustain it, we have made available an extra £34 million from Vince Cable: We have made it clear that doing nothing September, to bring the total to £151 million. is not an option. We fully understand the implications of rising energy costs for business, particularly energy- Nigel Adams: Business creation is on the up and intensive businesses. We have framed compensation unemployment is down by almost 30% in Selby and arrangements and payments have already been made Ainsty since the election. However, many small companies under the European Union emissions trading scheme, are struggling with crippling business rates. In some and state aid approval is now being sought for compensation cases, rates are almost the cost of the rent they are for the carbon price floor for energy-intensive companies. paying. What can the Government do to encourage local councils to engage with small businesses to assist David Simpson (Upper Bann) (DUP): What more can them with their rate costs? the Secretary of State do to encourage small businesses to apply for Government contracts? Vince Cable: The hon. Gentleman is right that the trend is a positive one. Half a million small businesses Vince Cable: A great deal has been done at central currently get rate relief and a third of a million pay no Government level to ensure that we reach our target rates at all. Under recent changes whereby local councils of 25% of Government contracts going to small and give discounts, as they are now encouraged to do, half medium-sized enterprises. Considerable progress has been of that will come from the Government. made in reducing the bureaucracy of pre-qualification 419 Oral Answers24 OCTOBER 2013 Oral Answers 420 questionnaires. The problem remains at the decentralised only 372 opted out of the scheme. Therefore, 99.75% of level—local government, hospitals and so on. Efforts employees have accepted the shares that we offered will be made through legislation to simplify that process. them. Bill Esterson (Sefton Central) (Lab): The No. 1 issue Mr Hollobone: Is not the number of posties who have for small businesses in my constituency is the high level opted out of the scheme remarkably low? Despite the of business rates. I urge the Secretary of State and his threats of industrial action and union militancy, is it ministerial colleagues to support our proposal for a not clear that the vast majority of Royal Mail employees business rate cut, followed by a freeze. have accepted the invitation from Her Majesty’s Government to take part in the biggest employee share Vince Cable: As I have said, there is an extensive scheme of any major privatisation? programme of business rate relief, which extends to half a million companies. That is a very good programme, Vince Cable: Yes, it is a very positive story. The but there is an issue with how we will continue to pay engagement of almost every employee of Royal Mail is for it, given the many other claims on Government extremely encouraging. I seem to remember that under spending. the last Labour Government we lost in the order of 2 million working days through industrial action in Paul Blomfield (Sheffield Central) (Lab): May I press every single year. This is a big change for the better. the Secretary of State further on business rates? Does he not recognise that in his constituency, as in mine, Mr Barry Sheerman (Huddersfield) (Lab/Co-op): May businesses are raising the issue of the rising cost of I remind the Secretary of State that before this privatisation business rates? Businesses in my constituency welcome every one of my constituents had a share in Royal Mail? the proposal to save them £450 by cutting and freezing It has been revealed that only a tiny number of people business rates. Would that not be welcomed in his in most constituencies now have any shares at all and constituency? that the Prime Minister’s hedge fund friends own a lot of them. Vince Cable: I am aware of this problem in the town centres of my constituency, and I am sure that it is a Vince Cable: On the contrary, the share register is problem across the country. I repeat that there is an dominated by large long-term institutional investors, extensive programme of business rate relief. The most of whom hold the savings of millions of our Government have given local councils the freedom to citizens. offer discounts on business rates and we provide a 50:50 matching contribution. Jonathan Edwards (Carmarthen East and Dinefwr) Toby Perkins (Chesterfield) (Lab): Labour is the party (PC): This afternoon, I am due to meet for lunch that of small business—[Laughter.] Conservative Members great Welsh export and one of the world’s best rugby may laugh, but their party believes that a business that players, George North. As the Secretary of State knows, has 300 members of staff is not that large. That shows George North was bought by Northampton from the how out of touch they are. Some 99% of businesses are mighty Scarlets at a very reasonable price during smaller than that. the summer. Does he think that the hedge funds feel the same as Northampton Saints, because they have acquired Under this Government, 1.5 million businesses have the Royal Mail crown jewels at a cut price? seen business rates rise by an average of £2,000.