§ 13. Gregory Barker (Bexhill and Battle)What recent representations he has received on how his policies are affecting small businesses; and if he will make a statement. [78236]
§ The Economic Secretary to the Treasury (John Healey)The Chancellor regularly meets small business leaders and receives a large number of written representations on small business concerns.
§ Gregory BarkerCan the Economic Secretary tell the House what are the latest indicators for business startups in the United Kingdom?
§ John HealeyWe have published this week the latest figures for business start-ups, nationally and in every part of the country. If the hon. Gentleman wants to complete the briefing that he normally uses, may I also point him to independent international studies that consistently show that the UK now has one of the most enterprise-friendly environments in the world and one of the best business tax regimes in the European Union? As Minister with responsibilities for Customs, may I also point him to some of the measures introduced 430 recently in my area to relieve the costs in time and money for small businesses in complying with taxation legislation and responsibilities?
§ Mrs. Anne Campbell (Cambridge)Is my hon. Friend aware that small businesses in my constituency are very supportive of the moves that have been made in recent years to increase the science and technology budgets and the innovation budgets? If he would like to consider how that has affected small business in practice, I would encourage him to visit some of the small manufacturing companies in my constituency, especially those doing innovative work with digital printing, which have a great future in front of them.
§ John HealeyI am grateful for the welcome that small companies in my hon. Friend's area have given, particularly to the new measures that the Government have put in place to support long-term investment in research and development and science and technology. That will be a crucial part of meeting the productivity gap and the challenge that the UK faces to close the gap with our competitor countries and to ensure that small business start-up rates, not just in my hon. Friend's constituency but across the country, are boosted, so that the survival rates of those small firms are boosted, too. I welcome her kind invitation to visit firms in her constituency, and I shall consult my diary manager on possible dates.
§ Mr. John Baron (Billericay)Given that the Institute of Directors has recently calculated that the annual cost of employment regulations has risen by £6 billion during the last five years, what is the Economic Secretary's response to small businesses in my constituency that say that it is becoming increasingly difficult to do business and that they are having to move their manufacturing base abroad?
§ John HealeyThe real cost of administering employment and other regulations is a fraction of the figure that the hon. Gentleman cites. We are ready to have a serious debate about regulation, but that debate must be based on fact and not on rhetoric. We have demonstrated since 1997 that we are ready to cut regulation when there is a good case for that. For example, we have raised the threshold for statutory audit, saving small companies £180 million a year, and we have cut and simplified the regulations on the minimum wage, saving small firms £100 million a year.
However, the reality is that there is an important role for regulation. It is part of ensuring that this country has fair competition and fair protection for employees. I take it from what the hon. Gentleman said that he is against the national minimum wage, against paid holidays and against the right for people to attend to family crises. However, provisions for all that have been introduced under this Government.