Please may I take this opportunity, Mr Speaker, to pay tribute to Tony Lloyd? I worked with him very closely on the all-party groups on poverty and fair business banking. He was a thoroughly decent man. On behalf of myself and the Department, I pass on our deep condolences to his friends and family.
The Government work with the British Business Bank to improve access to finance for smaller businesses through targeted programmes, such as the £12.4 billion of finance that is backing more than 90,000 businesses across the UK and the £1 billion in start-up loans for 105,000 small businesses since 2012.
I am grateful to my hon. Friend for that reply. Many SMEs and new businesses are finding it increasingly difficult to open a bank account and to then obtain the support and services that used to be available in the rapidly diminishing branch network. What steps is he taking to address those challenges that SMEs are facing?
My hon. Friend raises an important point. Leading banks and alternative lenders are committed to the SME finance charter to help small businesses and start-ups. We continue to work with the UK finance and banking industry to make sure that SMEs have the support from banking services that they require. Many leading challenger banks, such as Metro, Aldermore and Starling, provide additional application support. Banking hubs are also available for those without a bank on their high street to offer face-to-face support. Thirty have already opened, and 70 more are in the pipeline.
I thank the Minister for his response. There is a willingness to meet net zero commitments from businesses all over the United Kingdom of Great Britain and Northern Ireland, so would the Minister be prepared to introduce a scheme whereby small businesses can access funding to implement infrastructure changes in their businesses to help them achieve net zero, and will this be available to all parts of this great United Kingdom of Great Britain and Northern Ireland?
The hon. Member raises a very important point. It is something that we look at all the time, and certainly we have had discussions on the matter. We already have programmes in place, including the £12.4 billion that we distribute through the British Business Bank that supports nations and regions funds. Some of that will certainly help businesses to access finance to decarbonise. We look at those measures all the time, and we are happy to work with him on future programmes that we might roll out.
Small and medium-sized enterprises are a vital part of a thriving global economy, yet 49% of British SMEs say that they lack the time or resources to sell internationally. They are being hindered by complex regulation, insufficient access to funding and inadequate Government guidance. That is why Labour has launched the small business export taskforce with the Federation of Small Businesses to listen to business needs and address them head-on. What is the Minister doing to support hard-working SMEs in navigating the Government’s complex web of regulatory requirements and help unleash this untapped entrepreneurial potential?
We agree with the hon. Gentleman on the ambition, but he is probably behind the game a little in terms of what we are actually doing, not least in the 73 free trade agreements that we have agreed, including the comprehensive and progressive agreement for trans-Pacific partnership that is coming down the track. I hope that he will be supportive of that agreement. He has probably also never heard of the export support service, the international trade advisers and the export champions, all of which help our SMEs export to other parts of the word.
2. What steps she is taking with the Secretary of State for Science, Innovation and Technology to help increase inward investment into the science and technology sector.
My Secretary of State was so savvy that she brought in a science Minister and now, under her stewardship, science and technology is booming in the Department for Business and Trade. The UK has the No. 1 tech ecosystem in Europe, raising more venture capital than France and Germany combined. Science and tech is not just for fans; we have now mainstreamed it with the Office for Investment, which is reaching out to companies around the world to highlight the advantages of investing in the UK, bringing in over £5 billion of investment, as was announced at the global investment summit just last year.
3. What assessment her Department has made of the implications for her policies of trends in the level of operating costs for small and medium-sized enterprises.
The Government have taken action to help SMEs deal with cost of living pressures, including freezing fuel duty, maintaining the 5p cut for a further year, introducing the energy bills discount scheme and reversing the national insurance rise. In the autumn statement, the Chancellor announced a substantial business rates package to support the UK’s small businesses worth £4.3 billion over the next five years.
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Mr Speaker, you can see that I am using my freedom on the Back Benches to improve my fitness and to make myself as fit as the Department.
May I take this opportunity to thank and congratulate the Secretary of State and the team at the Department for Business and Trade on the work they are doing, particularly with the global investment summit? There is a wall of money out there globally to invest in UK science and tech—in life science, quantum, fusion and agritech—and we are beginning, finally, to attract that money. What plans does the Department have to make it easier for global investors to deploy money at scale in UK clusters?
My hon. Friend will know more than most, having had this brief previously. Of course, we are out there sourcing investment for the UK and, as I mentioned, we are already beating France and Germany. Further afield, the UK is the third country, behind the US and China, to reach the landmark of $1 trillion in value. We have the concierge service with the Office for Investment. We have also recently secured £4.5 billion through the advanced manufacturing plan. That, coupled with the research and development budget of around £39.8 billion between 2022-25, shows that we are ready to enable investment in the UK and to manufacture products in this area.
Will the Secretary of State and her team pay much more attention to the science and innovation possibilities in the hydrogen sector—that is, hydrogen energy and power? This is something we are good at, and the research is there. We need to be there quickly before the Chinese dominate the market.
I gently say that the hon. Gentleman should pay attention to the hydrogen strategy, which shows we are leaning forward and ensuring that we can capture the investment, de-risk any of the testing and ensure that intellectual property can be commercialised here in the UK. We of course see hydrogen in the mix in our future energy spectrum.