Support for Entrepreneurs

The Government continue to support entrepreneurs through start-up loans via the British Business Bank and through programmes such as growth hubs in England and “Help to Grow: Management” training across the UK. Later this year we will publish our small and medium-sized enterprise strategy, one key element of which will be to signal our determination to do even more to champion our entrepreneurs, including through a new vision for business support, built around the coming business growth service.

You will be pleased to know that I do not have a book coming out, Mr Speaker. I am reading the one that my hon. Friend the Member for Central Ayrshire (Alan Gemmell) has written, and it is excellent, but I should probably say on his behalf that any likeness to characters in this place is entirely coincidental. I thank the Minister for his response. I have seen at first hand his commitment to supporting Britain’s entrepreneurial spirit, but I worry that on the Isle of Wight unreliable cross-Solent transport is holding back entrepreneurs. Local businesses do not lack ambition; they lack a dependable link to their supply chains. Some are even considering leaving the island. Will the Minister meet me to discuss a long-term solution to cross-Solent travel that supports, rather than punishes, island businesses?

I welcome my hon. Friend’s commitment to championing entrepreneurs on the Isle of Wight. We know that there is huge untapped potential in the entrepreneurial talent across the UK, and we are determined to do even more to unlock it, including on the Isle of Wight. As he will know, the Department for Transport, which leads on cross-Solent travel, has been clear that ferry services to and from the Isle of Wight are vital for islanders and for business. I know he has already had some contact with ministerial colleagues at the Department for Transport to discuss these issues, but if he thinks I can be helpful, I will be happy to meet him.

Towns like Rugby have a proud industrial heritage and an exciting present, and we are building a dynamic and sustainable business and industrial future. It was very welcome that the Chancellor revised the Green Book to make sure that investment and economic growth are spread more fairly across the country, beyond the major city regions. Can my hon. Friend set out what support may be available for towns like Rugby to attract and encourage people to start and grow their own businesses—for example, entrepreneurship hubs in towns rather than cities, so that they can play a role, and targeted tax reliefs for firms setting up in places like Rugby?

I welcome my hon. Friend’s commitment to championing entrepreneurs in his constituency. He may know that we already have some 41 growth hubs across England, including the Coventry and Warwickshire growth hub, which provides a bespoke service for first-time entrepreneurs, tailored advice and support to start-ups and those wanting to scale up a business. We are determined to do more to help entrepreneurs and will set out our plans in our SME strategy, which is due to be published relatively shortly.

I recently met a load of entrepreneurs and small businesses in Mid Leicestershire who all have the same concern about the low VAT registration threshold of just £90,000. That is stifling their growth, because it adds a lot of bureaucracy and cost. What representations will the Minister make to the Chancellor to ensure that those small businesses can flourish?

The hon. Gentleman will not be surprised to know that we receive representations on the VAT threshold from a number of small businesses, and we ensure that they are heard by Treasury colleagues. He will recognise that VAT raises a significant sum of money for the public finances, and given the mess that we inherited, we had to take some difficult decisions about those public finances to protect funding for hospitals in his constituency, and indeed other public services across the country.

Recently imposed general product safety regulations have added yet another layer of cost and complexity to exports to the European Union. That is particularly hitting entrepreneurs and microbusinesses, many of which have had to end exports to their EU customers. Did the Department have any discussions with its EU counterparts during recent trade negotiations about exempting small and microbusinesses from those rules? If not, is it doing any work to support small businesses in particular, which have had to end exports to EU customers because of the new regulations?

We have been talking to businesses about what they can do in the light of the new regulations, and we are in the process of improving significantly the range of support available to businesses online. The Secretary of State recently set out our plans for a new business growth service, which will significantly improve the speed and quality of advice that businesses can get from the Government.