§ Mr. WigginTo ask the Secretary of State for Trade and Industry what recent discussions she has had regarding small business growth; and what the outcomes of those meetings were. [72459]
§ Nigel GriffithsI meet small business representative organisations on a regular basis to discuss small business growth, including the British Chambers of Commerce, the Confederation of British Industry, the Federation of Small Business, the Small Business Council, and the Ethnic Minority Business Forum.
In addition, I regularly visit all the Business Link Operators and I visit small businesses regularly to discuss the issues affecting their future development and growth.
The outcomes of these discussions inform SME policy development and the strategy of the Small Business Service, the new Strategy Board of which I am the chair.
In May I launched a consultation on a Comprehensive Strategy for Business Start-Ups in a drive to boost the enterprise culture and encourage more people to set up their own business. The strategy includes proposals for a new package of measures to support first-time entrepreneurs and growing businesses—particularly those from under-represented groups and disadvantaged parts of 1334W the country—and proposals to reduce the barriers facing start-ups. The consultation period will run until the end of July 2002.
§ Mr. WigginTo ask the Secretary of State for Trade and Industry how the Government defines a small business; and what(a) guidance has been given and (b) legislation is in place regarding the encouragement of small business growth. [724541
§ Nigel GriffithsFor statistical purposes the DTI uses the following definitions:
- Micro firm: 0–9 employees
- Small firm: 0–49 employees (includes micro)
- Medium firm: 50–249 employees.
Section 249 of the Companies Act, 1985 states that a company is 'small' if it satisfies at least two of the following criteria:
- A turnover of not more than £2.8 million
- A balance sheet total of not more than £1.4 million
- Not more than 50 employees.
A medium-sized company must satisfy at least two of the following criteria:
- A turnover of not more than £11.2 million
- A balance sheet total of not more than £5.6 million
- Not more than 250 employees.
(a) The Small Business Service provides, through 45 local Business Operators, guidance, advice or access to experts, on just about everything needed to start or grow a business. Services include: business planning, finance, regulation, exporting, innovation, management, quality, employment issues, training and development, design, and E-commerce.(b) The Government's aim is to make Britain one of the most competitive environments for business in the world-since 1997 the Government have cut the corporate tax bills of small companies by around 30 per cent. rewarding entrepreneurial spirit and promoting growth.The Government have introduced numerous measures to help small enterprises since 1997, including:
taking forward the recommendations of the Carter Review of Payroll Services;cutting the small companies rate of corporation tax from 23 per cent. to 19 per cent. and introducing a starting rate which we are now cutting from 10 per cent. to zero;introducing a 10p starting rate of income tax;making 40 per cent. first year capital allowances permanent; andintroducing measures to ease the impact of VAT on small business.
§ Mr. WigginTo ask the Secretary of State for Trade and Industry how many small businesses have(a) started up and (b) closed down in the past five years by region. [72453]
§ Nigel GriffithsThe number of VAT registrations and de-registrations is the best official measure of business start-ups and closures. VAT data do not capture much of the activity of the very smallest firms that operate under the VAT registration threshold (turnover of £52,000 at 1 April 2000). The latest data available are those for 2000.
1335W
Number 1996 1997 1998 1999 2000 Start-ups: VAT registrations 1996–2000 United Kingdom 168,200 182,570 186,250 178,460 183,325 North East 4,085 4,170 4,215 4,230 4,280 North West 16,475 18,120 18,595 18,085 18,535 Yorkshire and the Humber 11,315 11,825 11,820 11,635 11,975 East Midlands 10,845 11,745 11,895 11,255 12,030 West Midlands 13,295 13,635 15,030 14,405 14,485 East of England 16,140 18,270 17,920 17,080 18,420 London 34,055 37,165 39,670 37,335 37,915 South East 27,055 29,955 29,915 28,325 29,185 South West 13,840 15,315 15,545 15,140 15,440 England 147,105 160,200 164,605 157.490 162,265 Wales 6,105 6,240 6,135 5.995 6,190 Scotland 11,275 12,280 11,825 11,410 11,410 Northern Ireland 3,715 3,850 3,685 3,565 3,460 Closures: VAT De-registrations 1996–2000 United Kingdom 165,065 164,455 155,930 171,970 177,080 North East 4,505 4,390 4,035 4,295 4,220 North West 17,245 17,120 16,115 17,215 17,690 Yorkshire and the Humber 12,000 12,250 11,350 12,295 12,755 East Midlands 11,365 11,235 10,695 11,480 11,880 West Midlands 13,670 13,885 13,335 14,200 14,220 East of England 15,600 15,750 15,200 16.515 17,455 London 29,320 28,295 28,375 32,765 35,200 South East 25,680 25,665 22,985 25,900 27,255 South West 14,315 14,400 13,845 15,040 15,475 England 143,705 142,990 135,935 149.705 156,150 Wales 6,750 6,320 6,240 6,740 6,410 Scotland 11,535 11,540 10,930 11,900 11,390 Northern Ireland 3,080 3,605 2,825 3,625 3,130 Source:
Business Starts and Closures: VAT Registrations and De-registrations 1980–2000, Small Business Service