HC Deb 25 June 1979 vol 969 cc1-2
1. Mr. Kenneth Baker

asked the Secretary of State for Industry what proposals he has to encourage the development of small businesses.

The Secretary of State for Industry (Sir Keith Joseph)

We shall make risk-taking more worth while—for instance, by the measures we have taken in the Budget—and we shall prune unnecessary constraints to enterprise.

Mr. Baker

Is my right hon. Friend aware that there is now common agreement that higher output and an increase in the number of new jobs will come from the small and medium-sized business sector? Is he also aware that in inner- city areas the biggest inhibiting factor on small businesses is the high level of rents? Will he give what encouragement and assistance he can to those operations in the private sector, such as Clerkenwell Workshops, which seek to provide premises for small businesses at attractive commercial rates?

Sir K. Joseph

Yes, Sir.

Mr. Cryer

Will the Secretary of State explain how he thinks the recent Budget helps small businesses? For example, does he think that the recent increase in interest rates will help them? What is the right hon. Gentleman doing about the 15 recommendations on small businesses made by the Wilson committee, including a guarantee scheme?

Sir K. Joseph

The increase in interest rates was a necessary response to the legacy we inherited from the last Government and will, I hope, be temporary. We are consulting widely about the recommendations of the Wilson committee.

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