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My Lords, the Chancellor and I regularly discuss how we can promote small business. Yesterday, the Chancellor unveiled a budget for growth supporting new, small and growing businesses. Announcements included a 12-month business rate reduction for more than half a million small businesses, a doubling of the annual investment allowance to £100,000 and a doubling of the threshold to £2 million for entrepreneurs’ relief on capital gains tax. He announced that Her Majesty's Revenue will continue with "time to pay", which so far has involved £5.2 billion of delayed tax payment. So the Government are certainly not standing still in their support for small businesses.
My Lords, the Chancellor and I regularly discuss how we can promote small business. Yesterday, the Chancellor unveiled a budget for growth supporting new, small and growing businesses. Announcements included a 12-month business rate reduction for more than half a million small businesses, a doubling of the annual investment allowance to £100,000 and a doubling of the threshold to £2 million for entrepreneurs’ relief on capital gains tax. He announced that Her Majesty's Revenue will continue with "time to pay", which so far has involved £5.2 billion of delayed tax payment. So the Government are certainly not standing still in their support for small businesses.
Answered by
Lord Mandelson
(Labour)
Asked by
Lord Bates
(Conservative)
Type
Oral answers to questions
To ask the Secretary of State for Business, Innovation and Skills what discussions he had with the Chancellor of the Exchequer before the Budget on reducing the tax burden on small businesses.
Subjects
Small businesses; Tax burden
Date
25 March 2010
Reference
718 c1066
Chamber / Committee
House of Lords chamber
House
House of Lords
My Lords, I am very glad that the noble Lord, Lord Bates, has drawn this to my attention. I shall look at it and, if there is a problem with the administration, I shall see what can be done to simplify it.
My Lords, I am very glad that the noble Lord, Lord Bates, has drawn this to my attention. I shall look at it and, if there is a problem with the administration, I shall see what can be done to simplify it.
Answered by
Lord Mandelson
(Labour)
Asked by
Lord Bates
(Conservative)
Type
Oral answers to questions
I thank the Minister for that reply. Is he aware that half of all small businesses in this country do not claim the small business rate relief to which they are entitled because of the complexity of the process of applying and the complexity of the rules? As a result, small businesses are missing out on £400 million of vital support. Can the Secretary of State think of any reason why this payment should not be made automatically to all eligible small businesses, as we on this side of the House have proposed?
Subjects
Small businesses; Tax burden
Date
25 March 2010
Reference
718 c1066
Chamber / Committee
House of Lords chamber
House
House of Lords
Yes, my Lords. My noble friend raises important issues and these are precisely the sorts of paths we need to pursue and issues we need to examine. UK Finance for Growth, which will be taking on responsibility for the Government to oversee new funding arrangements for small businesses, will pick up precisely those matters that my noble friend has identified.
Yes, my Lords. My noble friend raises important issues and these are precisely the sorts of paths we need to pursue and issues we need to examine. UK Finance for Growth, which will be taking on responsibility for the Government to oversee new funding arrangements for small businesses, will pick up precisely those matters that my noble friend has identified.
Answered by
Lord Mandelson
(Labour)
Asked by
Lord Haskel
(Labour)
Type
Oral answers to questions
My Lords, other than bank finance, there is invoice discounting, pre-shipment finance and export credits. Has my noble friend taken those into account when considering finance for small companies?
Subjects
Small businesses; Tax burden
Date
25 March 2010
Reference
718 c1067-8
Chamber / Committee
House of Lords chamber
House
House of Lords
My Lords this seems like an issue that is a good candidate for the Better Regulation Executive in my department and I will refer the matter to it.
My Lords this seems like an issue that is a good candidate for the Better Regulation Executive in my department and I will refer the matter to it.
Answered by
Lord Mandelson
(Labour)
Asked by
Lord Marlesford
(Conservative)
Type
Oral answers to questions
My Lords, does the Secretary of State realise that Her Majesty’s Revenue and Customs has required every book-keeper, on however small a scale the book-keeper operates, to register under the money-laundering regulations and to pay a £95 per year fee? Given that he has 1.7 million small businesses with fewer than five employees and more than 2 million small businesses with fewer than 10 employees under his care, and given that only 12,500 book-keepers have registered so far—and they are not the book-keepers but the bigger people—will he take steps to end this burdensome bureaucratic nonsense for small businesses?
Subjects
Small businesses; Tax burden
Date
25 March 2010
Reference
718 c1067
Chamber / Committee
House of Lords chamber
House
House of Lords
No, the noble Lord, Lord Sugar, has other responsibilities and duties which he is fulfilling extremely well, working very hard across the country, much to the delight and encouragement of many small and medium-sized businesses in the country.
No, the noble Lord, Lord Sugar, has other responsibilities and duties which he is fulfilling extremely well, working very hard across the country, much to the delight and encouragement of many small and medium-sized businesses in the country.
Answered by
Lord Mandelson
(Labour)
Asked by
Lord Razzall
(Liberal Democrat)
Type
Oral answers to questions
My Lords, bearing in mind the well known views of the noble Lord, the Lord Sugar—who I am glad to see is in his place—that there is no difficulty of small or medium-sized businesses obtaining finance from banks, can he confirm that the noble Lord, the Lord Sugar, will not become the adjudicator he referred to?
Subjects
Small businesses; Tax burden
Date
25 March 2010
Reference
718 c1067
Chamber / Committee
House of Lords chamber
House
House of Lords
My Lords, the issue of small businesses’ access to finance has been at the forefront of my mind for the past 18 months. I am very glad that the Chancellor was able to announce yesterday the creation of UK Finance for Growth—it represents an overall £4 billion of funding for SMEs, including growth capital to meet the needs of those small businesses that seek to expand but cannot get hold of growth capital to the extent that they want—as well as further lending commitments between the Government, RBS and Lloyds. We also announced the creation of a small business credit adjudicator, which will work with SMEs struggling to secure finance to ensure that they are better treated by the banks. I know that all the small business organisations, as well as the CBI and the Institute of Directors, have given a very strong welcome to all these measures.
My Lords, the issue of small businesses’ access to finance has been at the forefront of my mind for the past 18 months. I am very glad that the Chancellor was able to announce yesterday the creation of UK Finance for Growth—it represents an overall £4 billion of funding for SMEs, including growth capital to meet the needs of those small businesses that seek to expand but cannot get hold of growth capital to the extent that they want—as well as further lending commitments between the Government, RBS and Lloyds. We also announced the creation of a small business credit adjudicator, which will work with SMEs struggling to secure finance to ensure that they are better treated by the banks. I know that all the small business organisations, as well as the CBI and the Institute of Directors, have given a very strong welcome to all these measures.
Answered by
Lord Mandelson
(Labour)
Asked by
Lord Higgins
(Conservative)
Type
Oral answers to questions
My Lords, in the course of the noble Lord’s discussions with the Chancellor, did he also stress the importance of the provision of finance to small businesses? In that context, can he explain why, despite the process of quantitative easing, the actual figures for the growth in the money supply show a precipitous decline in the latest report from the Bank of England?
Subjects
Small businesses; Tax burden
Date
25 March 2010
Reference
718 c1067
Chamber / Committee
House of Lords chamber
House
House of Lords
My Lords, the Government always insist on the value of training and adult skills for future jobs and growth and I underline that again today. Since 1997, we have expanded apprenticeships from 65,000 starts, which we inherited from the previous Government, to 240,000 starts in 2008-09, with the number rising since then. We are funding more apprenticeships than ever before in our country. In the financial year 2010-11 we will be investing over £1 billion. Of course, we can do better and we will seek to do so within the tighter financial climate that we are now entering.
My Lords, the Government always insist on the value of training and adult skills for future jobs and growth and I underline that again today. Since 1997, we have expanded apprenticeships from 65,000 starts, which we inherited from the previous Government, to 240,000 starts in 2008-09, with the number rising since then. We are funding more apprenticeships than ever before in our country. In the financial year 2010-11 we will be investing over £1 billion. Of course, we can do better and we will seek to do so within the tighter financial climate that we are now entering.
Answered by
Lord Mandelson
(Labour)
Asked by
Lord Martin of Springburn
(Crossbench)
Type
Oral answers to questions
My Lords, will the Secretary of State encourage the colleges to take on adult apprentices in the building industry? If we train adults to become electricians, plasterers and bricklayers, they can become self-employed very easily.
Subjects
Adult education; Cost benefit analysis; Finance; Further education
Date
25 March 2010
Reference
718 c1070
Chamber / Committee
House of Lords chamber
House
House of Lords
My Lords, it is true that I have been serving a long and recurrent apprenticeship for my current role. That is why, among other reasons, I am firmly committed to apprenticeship training for others. However, the figures that the noble Lord quotes about economically inactive people mask the fact that a rather large number of them are in full-time training and education, even though they may be registered as looking for work. While I strongly welcome the noble Lord’s support for further expansion of apprenticeships, training and further education, I hope that he will be able to have a word with his friend the shadow Chancellor to make sure that such activities are exempted from his plans for large-scale spending and investment cuts. The shadow Chancellor has made it clear again today that he has those in mind for the country should he ever be elected.
My Lords, it is true that I have been serving a long and recurrent apprenticeship for my current role. That is why, among other reasons, I am firmly committed to apprenticeship training for others. However, the figures that the noble Lord quotes about economically inactive people mask the fact that a rather large number of them are in full-time training and education, even though they may be registered as looking for work. While I strongly welcome the noble Lord’s support for further expansion of apprenticeships, training and further education, I hope that he will be able to have a word with his friend the shadow Chancellor to make sure that such activities are exempted from his plans for large-scale spending and investment cuts. The shadow Chancellor has made it clear again today that he has those in mind for the country should he ever be elected.
Answered by
Lord Mandelson
(Labour)
Asked by
Lord Hunt of Wirral
(Conservative)
Type
Oral answers to questions
Is the noble Lord aware that the number of those unemployed for longer than six months has now risen to 1.24 million and that there has been a substantial rise in the economically inactive to over one in five of the working-age population? Does he not agree that further education for adults provides people with an invaluable second chance in life? He has already enjoyed three chances in life. Will he continue to deny this second chance for others?
Subjects
Adult education; Cost benefit analysis; Finance; Further education
Date
25 March 2010
Reference
718 c1070-1
Chamber / Committee
House of Lords chamber
House
House of Lords
My Lords, the decisions that have been taken in this area have, of course, been based on rigorous analysis of how to maintain a strong skills system that helps to get people into work, not least for adult learners, while finding the necessary efficiencies required to reduce the deficit. The Government are confident that we will continue to sustain a strong base of adult education in further education colleges.
My Lords, the decisions that have been taken in this area have, of course, been based on rigorous analysis of how to maintain a strong skills system that helps to get people into work, not least for adult learners, while finding the necessary efficiencies required to reduce the deficit. The Government are confident that we will continue to sustain a strong base of adult education in further education colleges.
Answered by
Lord Mandelson
(Labour)
Asked by
Lord Cotter
(Liberal Democrat)
Type
Oral answers to questions
To ask the Secretary of State for Business, Innovation and Skills whether he undertook a cost-benefit analysis before deciding to reduce the funding of adult education in further education colleges.
Subjects
Adult education; Cost benefit analysis; Finance; Further education
Date
25 March 2010
Reference
718 c1069-70
Chamber / Committee
House of Lords chamber
House
House of Lords
My Lords, the Government have a strong record of investment in further education and skills. The core investment remains high, at unprecedented levels. Despite efficiency savings, more funds than ever are going into post-16 education and training for this next financial year, including, I am glad to say, £8.2 billion for 16-to-18 learning and £3.5 billion for adult training places. I know that future adult learner reductions will be challenging for some colleges, but transitional funding arrangements will protect colleges from financial difficulty and I will make sure that that remains the case.
My Lords, the Government have a strong record of investment in further education and skills. The core investment remains high, at unprecedented levels. Despite efficiency savings, more funds than ever are going into post-16 education and training for this next financial year, including, I am glad to say, £8.2 billion for 16-to-18 learning and £3.5 billion for adult training places. I know that future adult learner reductions will be challenging for some colleges, but transitional funding arrangements will protect colleges from financial difficulty and I will make sure that that remains the case.
Answered by
Lord Mandelson
(Labour)
Asked by
Lord Cotter
(Liberal Democrat)
Type
Oral answers to questions
I thank the Secretary of State. The importance of skills training has been emphasised time and again. It is concerning that my local college, Weston College, reports that £1.7 million is being taken away from the £6.7 million allocated to adult learners in the area. In addition, vulnerable adults over 25 and those with severe learning difficulties are not getting support at all. Surely this hits hard at the heart of the commitment to provide vocational training and jobs.
Subjects
Adult education; Cost benefit analysis; Finance; Further education
Date
25 March 2010
Reference
718 c1070
Chamber / Committee
House of Lords chamber
House
House of Lords
No, my Lords, I am not denying that there will be an effect. All I am saying is that the modest reductions that we are proposing, in line with our commitment to reduce the deficit over the coming four years, require belt-tightening of this sort across the public sector. I cannot exempt FE colleges or adult learning courses from that, but this has to be seen in the context of the colossal catch-up investment that the Government have made available during the past 10 years, which we are not proposing to put into reverse.
No, my Lords, I am not denying that there will be an effect. All I am saying is that the modest reductions that we are proposing, in line with our commitment to reduce the deficit over the coming four years, require belt-tightening of this sort across the public sector. I cannot exempt FE colleges or adult learning courses from that, but this has to be seen in the context of the colossal catch-up investment that the Government have made available during the past 10 years, which we are not proposing to put into reverse.
Answered by
Lord Mandelson
(Labour)
Asked by
Lord Elton
(Conservative)
Type
Oral answers to questions
My Lords, is the Minister saying that these cuts will have no effect on outcomes? If not, what does he expect the effect to be?
Subjects
Adult education; Cost benefit analysis; Finance; Further education
Date
25 March 2010
Reference
718 c1070
Chamber / Committee
House of Lords chamber
House
House of Lords
To ask the Secretary of State for Business, Innovation and Skills what discussions he had with the Chancellor of the Exchequer before the Budget on reducing the tax burden on small businesses.
To ask the Secretary of State for Business, Innovation and Skills what discussions he had with the Chancellor of the Exchequer before the Budget on reducing the tax burden on small businesses.
Asked by
Lord Bates
(Conservative)
Answered by
Lord Mandelson
(Labour)
Oral questions - Lead
Status
Answered
Procedure
Secretary of State's questions (HL)
For answer on
25 March 2010
Answered on
25 March 2010
My Lords, the Chancellor and I regularly discuss how we can promote small business. Yesterday, the Chancellor unveiled a budget for growth supporting new, small and growing businesses. Announcements included a 12-month business rate reduction for more than half a million small businesses, a doubling of the annual investment allowance to £100,000 and a doubling of the threshold to £2 million for entrepreneurs’ relief on capital gains tax. He announced that Her Majesty's Revenue will continue with "time to pay", which so far has involved £5.2 billion of delayed tax payment. So the Government are certainly not standing still in their support for small businesses.
Subjects
Small businesses; Tax burden
Date
25 March 2010
Reference
718 c1066
Chamber / Committee
House of Lords chamber
House
House of Lords
To ask the Secretary of State for Business, Innovation and Skills whether he undertook a cost-benefit analysis before deciding to reduce the funding of adult education in further education colleges.
To ask the Secretary of State for Business, Innovation and Skills whether he undertook a cost-benefit analysis before deciding to reduce the funding of adult education in further education colleges.
Asked by
Lord Cotter
(Liberal Democrat)
Answered by
Lord Mandelson
(Labour)
Oral questions - Lead
Status
Answered
Procedure
Secretary of State's questions (HL)
For answer on
25 March 2010
Answered on
25 March 2010
My Lords, the decisions that have been taken in this area have, of course, been based on rigorous analysis of how to maintain a strong skills system that helps to get people into work, not least for adult learners, while finding the necessary efficiencies required to reduce the deficit. The Government are confident that we will continue to sustain a strong base of adult education in further education colleges.
Subjects
Adult education; Cost benefit analysis; Finance; Further education
Date
25 March 2010
Reference
718 c1069-70
Chamber / Committee
House of Lords chamber
House
House of Lords
To ask the Secretary of State for Business, Innovation and Skills what action he is taking to encourage manufacturing in the United Kingdom.
To ask the Secretary of State for Business, Innovation and Skills what action he is taking to encourage manufacturing in the United Kingdom.
Asked by
Lord De Mauley
(Conservative)
Answered by
Lord Mandelson
(Labour)
Oral questions - Lead
Status
Answered
Procedure
Secretary of State's questions (HL)
For answer on
25 March 2010
Answered on
25 March 2010
The Government are fully committed to a strong future for British manufacturing, leading the world in new technologies and the transition to low carbon. We have earmarked almost £1 billion in investment to build key manufacturing capabilities in coming years, helping to turn UK research strengths in innovative technologies into commercial manufacturing opportunities.
Subjects
Government assistance; Manufacturing industries
Date
25 March 2010
Reference
718 c1068
Chamber / Committee
House of Lords chamber
House
House of Lords
The Government are fully committed to a strong future for British manufacturing, leading the world in new technologies and the transition to low carbon. We have earmarked almost £1 billion in investment to build key manufacturing capabilities in coming years, helping to turn UK research strengths in innovative technologies into commercial manufacturing opportunities.
The Government are fully committed to a strong future for British manufacturing, leading the world in new technologies and the transition to low carbon. We have earmarked almost £1 billion in investment to build key manufacturing capabilities in coming years, helping to turn UK research strengths in innovative technologies into commercial manufacturing opportunities.
Answered by
Lord Mandelson
(Labour)
Asked by
Lord De Mauley
(Conservative)
Type
Oral answers to questions
To ask the Secretary of State for Business, Innovation and Skills what action he is taking to encourage manufacturing in the United Kingdom.
Subjects
Government assistance; Manufacturing industries
Date
25 March 2010
Reference
718 c1068
Chamber / Committee
House of Lords chamber
House
House of Lords
My Lords, the noble Lord must have been listening to a different Budget yesterday. If I can simply point out to him that the British manufacturing sector did not in fact contract in absolute terms during the course of the last decade— before the recession that is—its output in both value and volume has remained stable despite the fiercest possible competition. China now defines the global economy in a way that it did not even a decade ago. What is clear is that competition is going to get a lot tougher in decades to come and therefore we all have to raise our game, including in the Government, in the support that we give to manufacturing in this country.
My Lords, the noble Lord must have been listening to a different Budget yesterday. If I can simply point out to him that the British manufacturing sector did not in fact contract in absolute terms during the course of the last decade— before the recession that is—its output in both value and volume has remained stable despite the fiercest possible competition. China now defines the global economy in a way that it did not even a decade ago. What is clear is that competition is going to get a lot tougher in decades to come and therefore we all have to raise our game, including in the Government, in the support that we give to manufacturing in this country.
Answered by
Lord Mandelson
(Labour)
Asked by
Lord De Mauley
(Conservative)
Type
Oral answers to questions
My Lords, I thank the Secretary of State for that Answer. Given that since his party came to power in 1997, almost 1.7 million manufacturing jobs have been lost and that manufacturing has fallen as a share of the economy by the largest amount on record under any Government—9.3 per cent of GDP—why did the Budget make no specific mention at all of manufacturing, and why were any plans to make Britain more attractive to foreign investment in manufacturing put off until the 2011 Finance Bill?
Subjects
Government assistance; Manufacturing industries
Date
25 March 2010
Reference
718 c1068
Chamber / Committee
House of Lords chamber
House
House of Lords
My Lords, the Government’s record is much better than that operating in the private sector. Since I challenged my central government colleagues to reduce their payment to a 10-day limit, most of them have successfully adopted that and are now operating it. The problem really lies in the private sector where there are many large companies which simply treat the companies that are supplying them as banks and insist on a 60, 70, 80 or 90-day payment period. That is completely unacceptable. I say to those in the private sector who are operating that sort of delayed payment system that they are putting in jeopardy the future of many businesses—small, medium-sized and somewhat bigger alike. I hope that they start revising their practice and approach in the payment of their invoices.
My Lords, the Government’s record is much better than that operating in the private sector. Since I challenged my central government colleagues to reduce their payment to a 10-day limit, most of them have successfully adopted that and are now operating it. The problem really lies in the private sector where there are many large companies which simply treat the companies that are supplying them as banks and insist on a 60, 70, 80 or 90-day payment period. That is completely unacceptable. I say to those in the private sector who are operating that sort of delayed payment system that they are putting in jeopardy the future of many businesses—small, medium-sized and somewhat bigger alike. I hope that they start revising their practice and approach in the payment of their invoices.
Answered by
Lord Mandelson
(Labour)
Asked by
Lord Hunt of Wirral
(Conservative)
Type
Oral answers to questions
I am delighted to hear that Lord Pooh-Bah has accepted another title in life. Is he aware, though, that the late payment of bills has now reached a record £24,000 million, which is affecting manufacturing industry in particular? Is he aware that much of this is by government bodies, including HMRC? What is he going to do about it? Does he accept that we cannot possibly go on like this?
Subjects
Government assistance; Manufacturing industries
Date
25 March 2010
Reference
718 c1069
Chamber / Committee
House of Lords chamber
House
House of Lords
We are committed in principle to the strategy and adopting the measures recommended by the Space Innovation and Growth Team, which is why on Monday at the conference I announced government funding for the new International Space Innovation Centre at Harwell in Oxfordshire. We will be following up with other measures. If he does not mind my slightly correcting his pronunciation, it was actually "Space Man-dy".
We are committed in principle to the strategy and adopting the measures recommended by the Space Innovation and Growth Team, which is why on Monday at the conference I announced government funding for the new International Space Innovation Centre at Harwell in Oxfordshire. We will be following up with other measures. If he does not mind my slightly correcting his pronunciation, it was actually "Space Man-dy".
Answered by
Lord Mandelson
(Labour)
Asked by
Lord Razzall
(Liberal Democrat)
Type
Oral answers to questions
My Lords, I am sure noble Lords will join me in congratulating the Minister on his new self-appointed title, which he announced at the UK Space Agency launch on Monday, of "Space Mandy". Does he agree with the report from the Space Innovation and Growth Team on a strategy to expand the industry six-fold, which it is estimated would produce 100,000 manufacturing jobs over the next 20 years and create an industry of £40 billion a year, and are the Government committed to that strategy?
Subjects
Government assistance; Manufacturing industries
Date
25 March 2010
Reference
718 c1069
Chamber / Committee
House of Lords chamber
House
House of Lords
I do not know anyone who supports a unilateral imposition of a levy on British banks, apart of course from the Leader of her Majesty’s Opposition—although I notice that by the end of the day, following his speech on Saturday, even he is becoming decidedly wobbly on the issue.
I do not know anyone who supports a unilateral imposition of a levy on British banks, apart of course from the Leader of her Majesty’s Opposition—although I notice that by the end of the day, following his speech on Saturday, even he is becoming decidedly wobbly on the issue.
Answered by
Lord Mandelson
(Labour)
Asked by
Lord Brooke of Alverthorpe
(Labour)
Type
Oral answers to questions
Does my noble friend think that the unilateral imposition of a levy on the banks will assist manufacturing in this country?
Subjects
Government assistance; Manufacturing industries
Date
25 March 2010
Reference
718 c1068
Chamber / Committee
House of Lords chamber
House
House of Lords
To ask Her Majesty's Government whether Mr Stephen Byers has spoken to the Secretary of State for Business, Innovation and Skills, Lord Mandelson, about food labelling regulations; and, if so, what was (a) the date on which the contact took place, and (b) the nature of the contact.
To ask Her Majesty's Government whether Mr Stephen Byers has spoken to the Secretary of State for Business, Innovation and Skills, Lord Mandelson, about food labelling regulations; and, if so, what was (a) the date on which the contact took place, and (b) the nature of the contact.
Asked by
Lord Hunt of Wirral
(Conservative)
Answered by
Lord Mandelson
(Labour)
Type
Written questions
Status
Answered
Answered on
24 March 2010
I have had no discussion with Mr Stephen Byers about food labelling.
Subjects
Food; Labelling; Byers, Stephen; Department for Business, Innovation and Skills
Date
24 March 2010
Reference
3055; 718 c296WA
House
House of Lords