13 Mar
Question
Business Support: Rural Areas

The Question session focused on the support for rural businesses, with significant contributions concerning potential growth, fiscal challenges, and government measures. The discussion highlighted the importance of rural businesses and the various dynamics affecting their operations. Primarily, the inquiry was centered around steps the government is taking to bolster rural enterprises, with particular interest in the tourism sector and taxation issues.

Outcome

The session resulted in a commitment from the Minister to engage in further discussions surrounding the concerns about VAT rates affecting tourism businesses. There was also an acknowledgment of the growth challenges facing rural enterprises and a call for continued scrutiny of government policies.

Key Contributions

Jamie Stone
Liberal Democrats

Highlighted the government's commitment to supporting rural business growth.

Mr Speaker

Jokingly suggested that Jamie Stone might be hopeful of receiving a chocolate biscuit.

Gareth Thomas

Acknowledged inability to immediately address VAT concerns but committed to further discussions.

Dame Harriett Baldwin
Conservative

Criticized the government's performance on delivering growth in rural areas.

Gareth Thomas

Defended the budgetary decisions as necessary due to past government mistakes.

Original Transcript
Jamie Stone
Caithness, Sutherland and Easter Ross
LD
Question
UIN: 903158

1. What steps he is taking with Cabinet colleagues to support businesses in rural areas.

The Parliamentary Under-Secretary of State for Business and Trade
Gareth Thomas

Businesses in rural areas offer significant potential for growth and are central to our economy. We are working across Government to unlock the full potential of rural businesses as part of the Government’s growth mission.

We are committed to launching a business growth service inspired by the US Small Business Administration, which will operate in partnership with devolved Governments and the growth hub network in England to make it easier to access support from Government for all businesses.

Jamie Stone

In conversation this morning with Trudy Morris, the CEO of the Caithness chamber of commerce, she outlined the sheer importance of tourism businesses to the local economy and the farmers in Scotland.

The concern expressed to me is on the rate of VAT on tourism and similar businesses, and although we do not know whether the Highland council will impose a tourism levy, that could be a double whammy. I do not expect for one instant hon.

Members on the Front Bench to say, “Jamie, you can have a cut in the rate of VAT”—well, I dream sometimes—but I would be grateful for a meeting to discuss the nature of the problem and how we could possibly tackle it.

Mr Speaker

You might get a chocolate biscuit these days.

Gareth Thomas

I apologise to the hon. Gentleman, as I cannot fulfil his dreams right now. However, I am happy to meet him to talk about that issue.

I recognise that there is considerable interest in that question from the hospitality industry, so I am happy to meet to hear, in a bit more detail, the particular concerns expressed to him.

Mr Speaker

I call the shadow Minister.

Dame Harriett Baldwin
West Worcestershire
Con

The Business Secretary, the Minister and the Chancellor have all said that they want growth, including in rural areas.

I have searched high and low for business growth statistics since the Budget of broken promises, and I find that, in the last quarter, there has been a growth of 50% in the number of businesses that are in critical financial distress. Why does the Minister think that is?

Gareth Thomas

I say gently to the hon. Lady that the difficult decisions that my right hon.

Friend the Chancellor had to take in the Budget were, interestingly, particularly well explained by her former colleague Kwasi Kwarteng, who made it clear that he thought they had to be taken because of the mistakes that he and the Conservative party had made when they were in government.

All content derived from official parliamentary records