🤝 Oral Answers to Questions

• Support for Rural Businesses:
  • The government is committed to unlocking the growth potential of rural businesses by launching a business growth service, inspired by the US Small Business Administration. This service will work with devolved governments and England’s growth hub network to make government support more accessible.
  • Concerns were raised about the high VAT rates affecting tourism businesses in rural Scotland. The Minister agreed to discuss this issue further with the concerned MP.
• Manufacturing in the West Midlands:
  • The west midlands is recognized as a leader in manufacturing, with significant investment in initiatives like the west midlands investment zone and the High Value Manufacturing Catapult.
  • The government is planning an industrial strategy with a focus on advanced manufacturing to break down growth barriers and support well-paid jobs.
  • Discussions emphasized the need for supportive policies to help British manufacturers compete globally and maintain high-quality jobs.
• Regulatory Environment:
  • The government aims to reduce the administrative burden of regulation by 25% by the end of the Parliament through a comprehensive review and reform plan.
  • Updates on the audit reform and corporate governance Bill are expected soon, which will address the need for balanced corporate governance frameworks.
• Support for High Street Businesses:
  • Initiatives to revitalize high streets include creating a fairer business rates system, protecting against crime and theft with the Crime and Policing Bill, and a forthcoming small business strategy.
  • Issues like rising national insurance contributions and their impact on local businesses were discussed, alongside efforts to support pubs and other high street establishments.
• Minimum and Living Wage Impacts:
  • Over 3 million workers are expected to benefit from increases in the national minimum and living wages, aimed at supporting low-paid workers.
  • The government highlighted the positive effects of these wage increases on families and local economies, despite concerns about the associated rise in employer national insurance contributions.
• Product Safety Regulations:
  • The government is supporting microbusinesses to comply with product safety regulations through additional guidance and training sessions offered by the export academy.
  • Efforts are being made to reduce Brexit-related trade barriers for microbusinesses exporting to the EU.
• Employment Regulation:
  • The government plans to tackle low pay, poor working conditions, and job insecurity through the Employment Rights Bill, ensuring a level playing field for employers.
  • There was debate over the impact of employment regulations on business hiring and the need for a proper assessment of their effects.
• Trade Union Recognition:
  • The government is simplifying the process for trade union recognition and strengthening protections during the recognition process through the Employment Rights Bill.
  • Concerns were raised about an employer derecognizing unions overnight, prompting calls for action to support workers’ rights.
• Hospitality Industry Support:
  • Efforts to support the hospitality industry include reforming business rates, reducing alcohol duty, and addressing strategic issues via the Hospitality Sector Council.
  • There was discussion on the abolition of the furnished holiday letting scheme and its impact on rural tourism and farming.
• Post Office Horizon Scandal:
  • The government has tripled compensation payments to victims of the Post Office Horizon scandal and is working to speed up the redress process.
  • Discussions also touched on the need for swift handling of related cases by the Criminal Cases Review Commission.
• Small Business Support:
  • The upcoming small business strategy aims to provide better support, including access to finance through the British Business Bank and improving late payment issues.
  • Challenges faced by small businesses in defense, ceramics, and other sectors were addressed, with calls for more support and protection from counterfeit goods.
• National Insurance Contributions Impact:
  • Recent changes to employer national insurance contributions have raised concerns among SMEs, particularly in the visitor economy, about potential layoffs and reduced hiring.
  • The government emphasized the necessity of these changes due to inherited fiscal challenges and encouraged dialogue with devolved governments.
• International Investment in Scotland:
  • The National Wealth Fund is investing in Scotland, including a sustainable packaging facility near Glasgow, to support jobs and growth.
  • Further measures are planned to attract green industry investments in areas like North Lanarkshire.
• Trade with the US and Global Engagement:
  • The government is engaging with the new US Administration to improve trade terms, despite challenges such as steel and aluminum tariffs.
  • The UK aims to maintain strong global trade relationships and is exploring industrial strategy partnerships, such as with Japan.
• Social Enterprises and Co-operatives:
  • The government is committed to doubling the size of the co-op and mutuals sector, with funding and support through initiatives like the social enterprise boost fund.
• Transport Infrastructure for Rural Businesses:
  • Rural businesses face challenges due to inadequate public transport, prompting calls for increased investment and better bus services.
• Trade with Asia Pacific and the Philippines:
  • Efforts are underway to enhance trade with the Asia Pacific region, including negotiating a financing framework partnership with the Philippines to support local businesses’ expansion.
• Investment in Female-Powered Businesses:
  • The invest in women taskforce is driving investment in female-founded businesses, with proposals for increasing female representation on investment committees.
• Bus Manufacturing Support:
  • A new UK bus manufacturing expert panel has been launched to support the transition to net zero and boost the sector after job losses due to previous government failures.

The parliamentary session displayed a moderate level of disagreement, warranting a rating of 3. The session was characterized by a mix of policy discussions and some pointed criticisms between opposing parties, particularly around the impacts of government policies such as national insurance contributions and the Employment Rights Bill. However, the disagreements were not overwhelmingly hostile or frequent throughout the entire session. Below are specific examples of the disagreements noted:

1. National Insurance Contributions and Business Rates:
   • Several Conservative MPs, including Dame Harriett Baldwin and Bradley Thomas, expressed concerns and disapproval over the Labour Government’s decisions on national insurance contributions and business rates, arguing that these decisions negatively impacted businesses and led to job losses or increased costs. Gareth Thomas, the Parliamentary Under-Secretary of State, responded by attributing these issues to the fiscal mess left by the previous Conservative administration, indicating a sharp disagreement on policy impacts and fiscal responsibility.
   • For instance, Bradley Thomas raised the issue of a significant increase in costs for The Queens Head pub, and Gareth Thomas countered by referencing the closure of pubs under the Conservative Government.
2. Employment Rights Bill:
   • Katie Lam criticized the Employment Rights Bill, mentioning a survey indicating businesses’ reluctance to hire due to the Bill’s perceived burdens. Justin Madders responded by highlighting support for the Bill’s provisions from some constituents, showing a clear policy disagreement.
3. Trade Union Recognition:
   • Josh Newbury raised concerns about Bidfood’s decision to derecognize unions, which led to a discussion on the importance of trade unions and protection against employer practices such as fire and rehire. Justin Madders emphasized the Government’s commitment to improving workplace rights, indicating a disagreement on approach and priorities in labor relations.
4. Retail and Hospitality Sector Concerns:
   • David Reed highlighted the closure of the Crusty Cob bakery and linked it to increased national living wage and national insurance contributions. Gareth Thomas defended these measures as necessary given the inherited economic situation and announced future business rates reforms, showing a disagreement over the balance of supporting workers versus business viability.
5. Steel and Aluminum Tariffs with the US:
   • Andrew Griffith criticized Jonathan Reynolds for perceived delays in addressing the US steel and aluminum tariffs, which led to a rebuttal from Reynolds about the UK’s diplomatic efforts and the need to negotiate without revealing strategies. This exchange displayed a disagreement on the timing and approach to international trade negotiations.

Overall, the session exhibited significant policy disagreement but was not dominated by acrimonious debates, hence the rating of 3.