His Majesty’s Government are committed to supporting small and medium-sized enterprises through exemption of new regulations where possible. This exemption was recently extended to businesses with up to 500 employees, potentially reducing red tape and bureaucracy for up to 40,000 more businesses. That means thousands of businesses will not have to comply with forthcoming regulations and, most excitingly of all, it will extricate them from hundreds of EU regulations during the process of review and repeal.
I thank my right hon. Friend for the support he has given to small businesses across the country in recent weeks. As a west countryman, he will know Wadworth Brewery based in Devizes, an important local employer with more than 150 pubs and probably 1,500 people employed in the brewery and the pubs. I am afraid to say that many of the pubs are in severe financial difficulties, with many saying that things are worse than covid. Does he agree that the very welcome energy relief scheme should be extended and that the Government should give consideration to reviewing business rates and the value added tax regime?
Wadworth is a very well-known west country brewer. I used to live not very far from a tied pub in Wadworth’s capable hands, and it is a distinguished company that serves fine products. However, I must tell my hon. Friend that, while VAT is a matter for the Chancellor, the British Business Bank is offering £12.2 billion of finance to more than 96,000 small and medium-sized businesses. On 20 July my predecessor introduced a new iteration of the recovery loans scheme, which helps smaller businesses to get loans and other kinds of finance up to £2 million per business, and the Government have reversed the national insurance rise, saving small businesses £4,200 on average. The energy bill relief scheme, which ought to get Royal Assent later today, will secure businesses over the winter, and there will be a review; it is one of the most generous schemes in the world and has been copied by foreign Governments.
Businesses in my constituency, including some of the fabulous small breweries, are struggling with the extra paperwork they now have to fill in in order to export to the European Union. The Business Secretary was a great exponent of Brexit, but even he must acknowledge that it is causing a huge burden to businesses and seriously affecting their profitability.
I look forward to the hon. Lady’s supporting the Retained EU Law (Revocation and Reform) Bill, which is coming later today and will get rid of lots and lots of dreadful EU regulations that are such a terrible burden on businesses. Is it not wonderful, Mr Speaker, that our socialist friends at last have this glorious zeal for deregulation? It is something we on the Conservative Benches have supported since the time of Noah.
In recent weeks, having crashed the economy, the Conservatives have increased the barriers facing small firms, with spiralling costs making it harder than ever to do business. Last week, the Federation of Small Businesses reported business confidence falling to its lowest levels since the pandemic. Yet, as almost half of small businesses reported falling revenues this quarter, the Secretary of State spent the weekend saying it was “Boris or bust”. Surely recent Government chaos shows that, for small businesses, it is Labour or bust. If the Secretary of State really wants to reduce the cost of doing business, will he back Labour’s call to raise the small business rate relief threshold for this financial year, saving local firms up to £5,000?
The hon. Lady has been in this House long enough to know that rates are a matter for the Chancellor of the Exchequer. She is raising the question at the wrong Question Time. It is worth bearing in mind, with unemployment at its lowest level since 1973, that every single socialist Government, including their brief period in office in 1923, have led to higher unemployment. What are they talking about?
I am proud of the support the Government have provided to energy customers. His Majesty’s Government launched a Treasury-led review into how we support energy bills beyond April next year. The review will result in a new approach that ensures there is enough support for those in need while costing the taxpayer less than planned. The cost has come down significantly because of the fall in gas prices in recent weeks. Any support for non-domestic energy customers will be targeted at those most affected. This new approach will better incentivise energy efficiency.
Citizens Advice Scotland has warned that it is already seeing huge demand for advice on the cost of living, energy bills and food insecurity. The uncertainty on the future of the energy price guarantee beyond April is frightening for consumers, not to mention the impact of insecurity faced by business. During the pandemic, the current Prime Minister kept U-turning on furlough extensions at the last minute. Will the Secretary of State offer reassurance and give at least some idea of when a post-April energy price scheme could be established?
Let me offer the reassurance that, if not for the United Kingdom, there would not be this level of support for businesses and individuals in Scotland. Scotland simply would not be able to afford it. It is the strength of the United Kingdom that allows this all-encompassing support to be provided. That is what the Government are doing. The package is one of the most generous that any country in the world has introduced. We are supporting people through the winter, and we will ensure there is focused support for the least well off in future winters.
Just four days ago, the Scottish Chambers of Commerce issued the findings of its latest business survey and, to no surprise, energy costs were the main concern. The Scottish Chambers of Commerce stated:
“The signs of an economic bounce back don’t look promising as more and more firms are telling us that they have been forced to cancel contracts, projects or plans to expand, due to soaring costs and difficulty in hiring people.”
How exactly does having no certainty on energy costs beyond March help those businesses?
Mr Speaker, I assume it is orderly to say that I think the hon. Gentleman lives in a fantasy land. Energy prices varied before this Government came in and will vary in future. What His Majesty’s Government have done is provide enormous support for businesses. I say it again: just think how much worse off businesses would be if they were dependent on an entirely Scottish Administration with no money.