HC Deb 05 June 1997 vol 295 cc538-40
9. Mr. Singh

To ask the President of the Board of Trade if she will make a statement on the Government's policy towards small businesses. [663]

Mrs. Roche

Small businesses are a vital part of the Government's programme because of their importance to the economy in the jobs they provide, the wealth they create and the new ideas and technology many of them develop.

Our priorities are: cutting red tape, taking tough action on late payment and improving information and support for small firms.

Mr. Singh

May I congratulate my hon. Friend on her appointment? Does she agree that the statutory right to interest on late payments will help many businesses in my constituency and others that are plagued by enormous cash flow problems?

Mrs. Roche

I thank my hon. Friend for his kind words. He is right to draw attention to the enormous problems that late payment of commercial debt causes our small businesses. I am delighted that it was announced in the Gracious Speech that the Government will introduce a fair payment of commercial debts Bill.

Mr. Whittingdale

I am gratified to learn that the Minister has read the pamphlet by my hon. Friend the Member for North Essex (Mr. Jenkin). I hope that she found it enlightening. Will she tell the House what the Government will do to help reduce the burden of business rates on small businesses?

Mrs. Roche

We have a manifesto commitment, and we have stated that we will have a consultative programme, which is more than the previous Government had in 18 years in imposing that burden. We will localise the business rate and enable proper consultation between local firms and local authorities, because that is vital. The hon. Gentleman might care to consult the right hon. Member for Horsham (Mr. Maude), who was a member of the previous Administration's deregulation task force, which fully supported our proposals.

Mr. Stevenson

Does my hon. Friend agree that one of the reasons the Tories lost the election was that they failed to support small businesses, especially through the business rate? Is she also aware that, in my constituency, council tax has not increased for two years, but business rates have gone up by no less than 30 per cent? That happened under the Conservatives, who are the enemy of small businesses.

Mrs. Roche

I am grateful to my hon. Friend. He is absolutely right. It is clear from speaking to small business people throughout the country that concern about the business rate is at the top of their minds.

Mr. Bernard Jenkin

What is the Minister going to do?

Mrs. Roche

It is no use the Tories protesting. The previous Government organised the "Your Business Matters" conference, at which the UBR and the business rate were at the top of the agenda for concern. Who introduced the UBR? The Tories.

Mr. Page

May I congratulate the hon. Lady on being appointed the Minister with responsibility for small businesses? I wish her every success, with my hands out straight and no fingers crossed. As the Government are getting used to U-turns, may I ask for one more—on the social chapter? If that is not possible, will the Minister lobby furiously for an opt-out or derogation for small firms? Small firms will create employment, but they will be hit hard by the minimum wage. Let them not be hit hard by the social chapter. I do not mean the social chapter of today, but the one that will follow as soon as we are foolish enough to sign the agreement.

Mrs. Roche

I thank the hon. Gentleman for his kind words and for his great courtesy to me when I was his shadow. It was much appreciated. He should consider the wording of the social chapter. I know that the former Chancellor did not read the Maastricht treaty, but there is no excuse for not reading the social chapter, which expressly mentions small firms and says that nothing will be done under the chapter mechanism that places an undue administrative burden on them. We made it very clear that we would use the mechanism to promote employability and competitiveness, and that is what we will do.