HC Deb 20 July 1994 vol 247 cc255-6W
Mr. David Shaw

To ask the Secretary of State for Social Security if he will make a statement on the achievements of(a) his policies and (b) his Department in helping small businesses over the last 12 months as against the previous 12 months; if he will publish the performance indicators by which his Department monitors those achievements and the statistical results of such monitoring; and if he will set out his targets to help small businesses in the next year.

Mr. Hague

The Government recognise the crucial role played by small firms in the United Kingdom econorny. The Government help small firms by keeping inflation and interest rates low and by reducing legislation and administrative burdens. They also provide direct assistance where appropriate and are currently establishing a network of Business Links to provide high-quality business support across the country.

Measures introduced by the Department specifically to assist small businesses include:

The Department has increased, from April 1994, the qualifying threshold for small employers' relief for statutory sick pay from £16,000 to £20,000.

From April 1994, the Department improved and simplified the procedures for self-employed people claiming family credit, by including a new form in the claim pack on which self-employed people can provide earnings details straight away and by extending the fast-track service to the newly self-employed.

Reductions in employers' national insurance contributions from April 1994 were substantially greater for lower-paid employees—earning under £200 a week. This is likely to help small businesses.

From April 1994 changes have been made to the national insurance treatment of people, such as sub-postmasters, who have a salary from a main occupation as well as income from a subsidiary business. Where the income from the small business is low, they may now claim exception from self-employed national insurance even though, for income tax purposes, they chose to have all their earnings taxed together. Previously such people were liable for contributions as both employed and self-employed persons.

Other measures aimed at business in general, which should help small businesses, include:

Administration of the Statutory Sick Pay scheme will be simplified by abolition of the lower rate of SSP from April 1995.

The three tests for entitlement to statutory maternity pay have been replaced by a single test for women expecting a baby on or after 16 October 1994.

The Contributions Agency has completed the redesigning of all forms it sends out to businesses, with the aim of making them simpler to understand.

The Department has a system to monitor proposals which have an impact on small business, to ensure that the needs and costs to small businesses are taken into account, but there are no performance indicators specifically for monitoring achievements in this area. However, we attach particular importance to action taken to help small businesses and will continue to explore further ways of doing so.