HC Deb 04 May 1989 vol 152 c355
16. Mr. Ted Garrett

To ask the Chancellor of the Exchequer what assessment he has made of the impact of interest rate rises since 1988 on small businesses.

Mr. Lilley

Inflation is the greatest threat to the prosperity of small businesses, which will therefore greatly benefit from the Government's firm anti-inflationary policy.

Mr. Garrett

Does the Minister not agree that what he has stated is exactly the statement made by the Small Business Research, Trust? Having said that, will he not do anything about it. One of the biggest problems facing small businesses is debt collecting. Will the brains of the Treasury think of some way in which the larger companies can pay their debts on time to the small businesses which operate for their benefit?

Mr. Lilley

I am not at all surprised, and I welcome the fact that the Small Business Bureau endorses our attitude towards inflation and not that of the Opposition. Perhaps, that is because we have been successful in encouraging the growth of new businesses. During the past year, the number of businesses trading has increased by more than 1,200 every week. On the question of debts suffered by small businesses, the scheme that we introduced in the Budget before last has been a great help to the small companies which have chosen to take advantage of it.

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