🗳️ Oral Answers to Questions
Commons Chamber
The UK government is set to launch a new business growth service this year, aimed at supporting small businesses by improving access to loans, training, and export help. Discussions are also underway with regional governments to extend this support across the UK. Additionally, a new industrial strategy is being developed to drive growth in eight key sectors, including life sciences and automotive, with significant investments planned to boost these industries. The government is also focusing on revitalizing high streets and supporting automotive and tech sectors through specific funding and policy initiatives.
Summary
- Business Growth Service (BGS)
- The government is developing a Business Growth Service aimed at supporting small businesses, with plans to launch it later this year.
- The BGS will help businesses access support like start-up loans, training, management support, and help with exports.
- The government aims to complement existing support systems in Scotland, Wales, and Northern Ireland by offering the BGS across the UK.
- Employment Costs
- The government plans to address employment costs through the Employment Rights Bill, which aims to enhance worker security, pay, and productivity.
- Proposals include increased protection for small businesses through an elevated employment allowance and a freeze on the small business rate multiplier.
- Opposition from the Conservative party highlighted concerns about the Bill potentially increasing unemployment due to higher employer costs.
- Fireworks
- Efforts are underway to reduce the noise level of fireworks, with a limit of 120 dB for consumer fireworks and a promotion of lower-noise options around 90 dB.
- The government is engaging with businesses and charities to discuss further reducing noise and closing licensing loopholes.
- Concerns were raised about the impact of fireworks on vulnerable individuals and pets, with calls for more restrictive measures.
- Industrial Strategy
- The government, alongside various departments, is developing an industrial strategy backed by key business leaders and trade unions.
- The strategy aims to drive growth, particularly in sectors like defense, manufacturing, renewable energy, and advanced technology.
- Efforts are also being made to address energy costs and competitiveness, with a focus on transitioning to clean and renewable energy sources.
- Steel Industry
- A £2.5 billion investment has been pledged for the steel strategy to revive the industry following years of decline.
- Plans include boosting competitiveness and securing jobs at key steel plants, with a particular focus on Sheffield and Wolverhampton.
- Support for High Street Businesses
- The government is working on a small business strategy to revitalize high streets, to be published later this year.
- Initiatives include supporting banking hubs to replace closed bank branches and addressing the financial pressures on businesses due to costs and rates.
- A focus is being placed on ensuring sustainable post office and banking services for local communities.
- International Investment
- The UK aims to attract international investment through new initiatives like the National Wealth Fund, which has already leveraged £1.6 billion in private investment.
- Educational partnerships, particularly with Pakistan, are being strengthened to ease financial pressures on UK universities and support international growth.
- Business Confidence
- The government is introducing planning reforms and a modern industrial strategy to boost business confidence.
- Measures to support apprenticeships and skill development are being prioritized to address workforce needs and drive economic growth.
- Post Office Closures
- The government has set minimum access criteria to ensure all citizens have access to postal services despite branch closures.
- Efforts are ongoing to find sustainable solutions for affected communities, including potential joint post office and banking services.
- Free Trade Agreement with India
- Trade negotiations with India are set to be relaunched, aiming for a deal that would provide market access and drive economic growth.
- The government is also engaging on broader diplomatic issues, such as the case of detained UK citizen Jagtar Singh Johal.
- Encouraging Entrepreneurship
- Support for entrepreneurs includes start-up loans through the British Business Bank, with further encouragement through the upcoming small business strategy.
- Special attention is being given to women entrepreneurs, aiming to increase the proportion of equity investment in female-led businesses.
- Support for North-east Businesses
- A significant investment of £1.4 billion has been made in the North East, including support through the North East Growth Hub.
- The government aims to foster growth and job creation in the region, particularly in emerging technologies.
- Automotive Industry
- Over £2 billion in funding has been committed to support zero emission vehicle manufacturing and its supply chains.
- Focus is also on enhancing workforce skills and apprenticeship schemes to promote career growth within the sector.
- General Growth Agenda
- The Chancellor’s growth plan includes revitalizing high streets, supporting businesses, and investing in infrastructure and education.
- The government is keen to engage with local MPs and stakeholders to ensure all regions, such as Doncaster, benefit from these initiatives.
Divisiveness
The session displays a moderate level of disagreement, warranting a rating of 3. Here are the key examples and reasons for this rating:
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Employment Costs Debate: Jerome Mayhew (Con) expresses concerns about rising employment costs due to recent government policies, including the Employment Rights Bill. He directly challenges the Minister, Justin Madders, on the impact of these policies on unemployment. Justin Madders responds by arguing that the bill’s provisions have not yet come into effect and do not immediately drive unemployment, highlighting a disagreement on the interpretation of economic impacts (paragraph 10-11).
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Energy Policy and Costs: Sir Desmond Swayne (Con) critiques the government’s energy policy, stating that it drives ‘uncompetitive energy costs.’ Sarah Jones defends the policy, explaining that inherited energy costs and the push toward renewable energy are expected to reduce costs in the long run, showing a disagreement on policy effectiveness and its economic consequences (paragraph 43).
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Industrial Strategy and Specific Industries: Chris Law (SNP) questions the government’s inaction regarding the Grangemouth refinery closure, expressing disagreement with the government’s approach to supporting specific industries, despite their inclusion in broader strategies. Sarah Jones responds by mentioning collaborative efforts and initiatives aimed at transitioning workers to new energy sectors, indicating a disagreement on the focus and execution of industrial policy (paragraph 45-46).
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Business Confidence: Sir John Whittingdale (Con) directly challenges the Minister on declining business confidence. Gareth Thomas responds by citing positive surveys and measures taken by the government to promote growth, showing a clear disagreement on the actual state of business confidence (paragraph 55).
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Automotive Industry Policy: Greg Smith (Con) repeatedly critiques the Zero Emission Vehicle (ZEV) mandate, arguing it does not align with consumer demand and harms the automotive sector. Gareth Thomas counters by referring to more optimistic industry investments and refuting optimism from Smith’s claims about policy impacts, highlighting a significant disagreement on automotive policy (paragraph 57-59).
The session contains multiple instances of clear disagreements between members on various government policies and their economic impacts. However, the disagreements tend to be policy-focused and not consistently acrimonious or personal, which mitigates the rating from being higher. Also, many responses from ministers are constructive and aim to address concerns, suggesting a level of dialogue despite the differences.