15 December 2020
Business, Energy and Industrial Strategy Questions

Nadhim Zahawi MP, Minister for Business and Industry, responds to MPs’ questions.

Covid-19: Support for Businesses

Harriett Baldwin (West Worcestershire) (Con)

What steps his Department is taking to support businesses during the covid-19 outbreak. (910301)

Paul Holmes (Eastleigh) (Con)

What steps his Department is taking to support businesses during the covid-19 outbreak. (910315)

Joy Morrissey (Beaconsfield) (Con)

What steps his Department is taking to support businesses during the covid-19 outbreak. (910317)

The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Nadhim Zahawi)

My Department continues to deliver a wide range of measures to support UK businesses. We have extended our loan schemes, which have already delivered more than £65 billion of finance, until the end of January.

Harriett Baldwin 

That level of support is impressive, and I also thank the Minister for all he is doing on the vaccine roll-out. There are sections of the UK economy that are going to grow rapidly, not least the green industrial revolution, thanks to the energy White Paper announced yesterday. What steps is he taking to make sure that it is UK-based businesses that grow the workforce and benefit from the job creation as a result of the green industrial revolution?

Nadhim Zahawi 

I am grateful to my hon. Friend for her excellent question. The 10-point plan will build on the nearly half a million green jobs that already exist in the UK economy, supporting up to 250,000 further high-skilled jobs. The House will be interested to know that we are talking about 60,000 in offshore wind, 10,000 or more in nuclear, 50,000 in green and comfortable homes, 8,000 in hydrogen, 53,000 in carbon capture utilisation and storage and 40,000 in accelerating the shift to zero-emission vehicles.

Paul Holmes 

The weekend before last, I was pleased finally to start my Christmas shopping in Botley High Street, as part of Small Business Saturday, which included visiting Wardrobe at 24 and Mermaids deli. This crucial campaign highlights the important role that businesses and entrepreneurs play. Does my hon. Friend agree that it is more important than ever to support our high streets and shop local this Christmas? Will he assure me that this Government will continue to stand by our town centres and high streets as we recover from covid?

Nadhim Zahawi 

I absolutely agree with my hon. Friend; now more than ever it is vital that we continue to help our local economy by supporting our town centres and high streets. That is why we have delivered one of the most generous comprehensive packages of support, with a total financial package of £200 billion.

Joy Morrissey 

Does my hon. Friend agree on what a success the recent Small Business Saturday events were and on how important small businesses are to local communities across my constituency in Gerrards Cross, Beaconsfield and Marlow? Does he agree that we must continue to fight for small businesses during this pandemic, so that we do not risk undermining the economic foundation of our country?

Nadhim Zahawi 

The recent Small Business Saturday event meant that the spend from the Great British public rose to £1.1 billion this year, which is a 38% rise on last year. The Government will continue to champion small businesses, through our unprecedented support schemes, as they begin to recover from the impact of covid-19. As the Secretary of State has just reminded me, the spend is not £200 billion—it is £280 billion of support for small business.

Chi Onwurah (Newcastle upon Tyne Central) (Lab) [V]

Of the £5 billion of new online spend because of the pandemic, 40% has gone to one website, Amazon. Many small businesses are afraid that they will not make it through the winter because of a lack of Government support, and they have Brexit and climate and technological change to deal with too. So I want to ask the Minister this: what is the plan for small businesses to survive covid and build back smarter and greener? I am talking not about vague promises, but about firm commitments to help businesses invest in new technologies, as Make UK has called for, or to target procurement to support net zero businesses, as the Institution of Civil Engineers proposes. Or are the Government just going to let business down again?

Nadhim Zahawi 

As a fellow engineer, the hon. Lady will know that the Made Smarter initiative has been a tremendous pilot in the north-west. We recently announced a further expansion, with £300 million—£147 million coming from the Government and the balance coming from the private sector—to support the adoption of technology into manufacturing. I hope the hon. Lady will continue to support Government initiatives such as Made Smarter.



Covid-19: Support for Business

Chris Loder (West Dorset) (Con)

What steps he is taking to support small businesses in areas under tier 2 covid-19 restrictions. (910316)

Grahame Morris (Easington) (Lab)

What assessment he has made of the availability of the local restrictions support grant (open) to businesses in areas under tier 2 covid-19 restrictions. (910321)

The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Nadhim Zahawi)

Businesses in tier 2 that are required to close can access payments of up to £1,500 per 14 days of closure. We are giving additional financial support of £1.1 billion to local authorities to support other businesses severely affected by restrictions even though open.

Chris Loder 

May I gently suggest to the Minister that one of the best ways he will be able to support small businesses in my constituency of West Dorset is to use his influence in discussions within Government tomorrow to reduce West Dorset from tier 2 to tier 1? In the event of that not being possible, could he outline more specifically what the Government will be doing to support the 97% of businesses that are small or micro-sized?

Nadhim Zahawi 

I recognise that the winter months will continue to be extremely tough on many businesses in my hon. Friend’s constituency, but I am confident that the grant programme that we have in place, alongside other measures like the job retention scheme and the support for the self-employed that have been so widely discussed this morning, will continue to deliver that support. An estimated 90% of small and medium-sized business premises in closed retail, hospitality and leisure sectors should, broadly, have their monthly rent covered by the business grant programme.

Grahame Morris 

It is essential that the local restrictions support grant is available promptly to businesses and is not subject to a prolonged application process. In anticipation of some areas—hopefully my own in the north-east—moving into tier 2 this week, will the Secretary of State ensure that grants are paid quickly to businesses, including the retrospective grants, particularly to pubs?

Nadhim Zahawi 

The local restrictions support grants, additional restriction grants and Christmas support payments are all available now for businesses through their local authority. I know that the Secretary of State takes these businesses very seriously. Throughout this whole process, since back in March, he made sure that all his Ministers talked to local government to make sure that we do get those payments out promptly.



Life Sciences Sector

Chris Green (Bolton West) (Con)

What steps his Department is taking to support the life sciences sector. (910318)

The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Nadhim Zahawi)

The Government have invested approximately £1 billion through two life sciences sector deals, helping to generate significant industry investment in the UK. Last year the industry had a turnover in the UK of £80.7 billion.

Chris Green 

The life sciences sector is a truly international endeavour, as can be so clearly seen with the recent vaccine research efforts. With worries in the sector about our ongoing relationship with European countries and the European Union, would my hon. Friend confirm that the concerns of the life sciences sector are of paramount importance in the ongoing negotiations?

Nadhim Zahawi 

Clearly, the UK’s relationship with the EU is subject to ongoing negotiations, but as we leave the EU the life sciences sector will be supported through the life sciences sector deals that I mentioned, and a new, innovative regulatory framework. The Medicines and Healthcare Products Regulatory Agency has proven itself globally to be one of the finest regulators in the world, and new international regulatory collaborations are on the way too.