PARLIAMENTARY DEBATE
Small Businesses: Economic Growth - 5 September 2024 (Commons/Commons Chamber)

small businesses are the beating heart of our high streets and communities, and they are essential to economic success and our growth mission. We want growth in every part of the UK, and small businesses have an enormous role to play in that.

In Southend and Leigh, there are over 7,100 small and medium-sized enterprises, and in areas like Leigh Road, the Broadway and London Road, very few units are empty. Will my right hon. Friend meet me and representatives of the local business community to understand the challenges they face, and to discover some of the opportunities that businesses have taken to really capture the market?

I welcome my hon. Friend to his place. I have always enjoyed my visits to his constituency, particularly enjoying an ice cream at Rossi’s ice cream parlour. Those visits had a serious purpose: they helped us to build our programme for small business, which recognises not only issues such as late payments, which this Department will deal with, but the need for the whole Government to tackle access to finance and retail crime—the things that make a difference. I will be delighted to make sure that my hon. Friend gets the meeting that he requests with my officials, so we can continue to do that important work.

Small businesses in my constituency are keen to play their part in the Government’s growth agenda, but they tell me that they have been priced out of trading in Farnborough town centre because of rising costs. Will the Secretary of State join me in congratulating the Federation of Small Businesses, which this September celebrates its 50th year of supporting small businesses in the UK? What is his Department doing to ensure that small businesses that want to trade on the high street are supported to do so?

I also welcome my hon. Friend to her place. I was pleased to meet her at the Farnborough air show, of which I am sure her community is extremely proud. I also extend birthday wishes to the Federation of Small Businesses, with which we work very closely, particularly on policies on issues such as late payments. I am always aware of the FSB’s incredible coverage; it has over 150,000 members across the country. Of course, the FSB began in Blackpool, so it is another great thing that the north-west of England has given this country.

West Lancashire is rich in small and medium-sized enterprises and boasts several markets, but local business owners and market traders tell me that a lack of access to cash banking services is a major obstacle to growing their businesses and is placing additional costs on trading. How are the Government planning to support SMEs’ access to cash banking services, especially in rural areas?

This issue is important to Members in all parts of the country, but I recognise my hon. Friend’s particular point about prosperous rural economies. Access to banking and financial services is a prime example of the fact that the Government will work across every Department to make sure we are giving businesses what they need. I am not nostalgic, and I understand that banking has changed, but small businesses need to be able to deposit cash on the high street. The key policy in this area will be run by the Treasury, but this is about changing the eligibility for banking hubs, so that we have more of them. We will see at least an additional 350 in this Parliament, including in my constituency; tomorrow, I will take a sneak peek at the new banking hub in Stalybridge.

Under the Labour Mayor of London’s proposals, many small businesses that drive vans via the Blackwall tunnel will soon have to pay charges of up to £40 a day—the congestion charge, the ultra low emission zone charge, and the Mayor’s new tunnel tax. Do the Government agree that this is neither fair nor good for economic growth?

I thank the hon. Member for raising a matter that is important to his constituency. My Department works very closely with a range of devolved arrangements around the UK, and it is important to work with them with respect and good faith. This question is clearly for the Mayor of London, but I recognise the hon. Member’s point. We always take heed of the aggregate impact on business of everything at every level of government, which is why having an industrial strategy and a small business plan is key.

Small businesses in the south-west have a huge role to play in growing the economy. However, the latest south-west small business index score, which measures the confidence of small businesses, has declined by 23%—there has been a fall of 30 points since the last quarter. Will the Minister meet me to discuss how we can support small businesses across the south-west?

Business confidence was strengthened considerably across the United Kingdom as a whole following the general election and the return to some political stability, which businesses of every size have sorely missed over recent years. However, I hear the hon. Lady’s point about her area and region, which is an important priority for me. I will ensure she gets the meeting she needs, so we can have a conversation about how we can work together to give people in her area a platform for success.

What action is the Government taking to support small and medium-sized businesses in getting access to finance, so that they can grow for the future?

I thank the hon. Member for that question. That is a key issue. There have been positive developments in recent years, particularly through the work of the British Business Bank. The Government feel that the landscape for public finance institutions is now quite busy. The key policy is to ensure that the national wealth fund aligns with priorities in this area, expands the work that has been done, and ensures consistency, so there is a ready way for businesses to understand what can sometimes be a confusing landscape. Also, policies such as that on growth hubs will continue, so the interface for businesses is straightforward and simple, and, fundamentally, the product to access finance will be there when they need it.

I call the spokesperson for the Liberal Democrat party.

I thank the hon. Lady for her kind words. I recognise that the Liberal Democrat manifesto shows that we have many common areas of interest, particularly on industrial strategy and trade. Under this Government, trade policy will match our domestic, economic and business priorities. We will be able to reset our relationship with the European Union because, to be frank, we are unencumbered by some of the internal politics of the last Government. We believe that we can make the most of opportunities around the world. Businesses tell me, as I am sure they tell every hon. Member here, that for many years, politics has been driving the agenda, rather than what businesses need. That will change, and has already begun to change. We will work with anyone in the House who is keen to provide a platform for success on knocking down barriers and getting businesses what they need.