Skip to main content

SMEs: Access to Finance

Volume 744: debated on Thursday 25 January 2024

1. What steps she is taking with the Chancellor of the Exchequer to help increase access to finance for small and medium-sized enterprises. (901135)

Please may I take this opportunity, Mr Speaker, to pay tribute to Tony Lloyd? I worked with him very closely on the all-party groups on poverty and fair business banking. He was a thoroughly decent man. On behalf of myself and the Department, I pass on our deep condolences to his friends and family.

The Government work with the British Business Bank to improve access to finance for smaller businesses through targeted programmes, such as the £12.4 billion of finance that is backing more than 90,000 businesses across the UK and the £1 billion in start-up loans for 105,000 small businesses since 2012.

I am grateful to my hon. Friend for that reply. Many SMEs and new businesses are finding it increasingly difficult to open a bank account and to then obtain the support and services that used to be available in the rapidly diminishing branch network. What steps is he taking to address those challenges that SMEs are facing?

My hon. Friend raises an important point. Leading banks and alternative lenders are committed to the SME finance charter to help small businesses and start-ups. We continue to work with the UK finance and banking industry to make sure that SMEs have the support from banking services that they require. Many leading challenger banks, such as Metro, Aldermore and Starling, provide additional application support. Banking hubs are also available for those without a bank on their high street to offer face-to-face support. Thirty have already opened, and 70 more are in the pipeline.

I thank the Minister for his response. There is a willingness to meet net zero commitments from businesses all over the United Kingdom of Great Britain and Northern Ireland, so would the Minister be prepared to introduce a scheme whereby small businesses can access funding to implement infrastructure changes in their businesses to help them achieve net zero, and will this be available to all parts of this great United Kingdom of Great Britain and Northern Ireland?

The hon. Member raises a very important point. It is something that we look at all the time, and certainly we have had discussions on the matter. We already have programmes in place, including the £12.4 billion that we distribute through the British Business Bank that supports nations and regions funds. Some of that will certainly help businesses to access finance to decarbonise. We look at those measures all the time, and we are happy to work with him on future programmes that we might roll out.

Small and medium-sized enterprises are a vital part of a thriving global economy, yet 49% of British SMEs say that they lack the time or resources to sell internationally. They are being hindered by complex regulation, insufficient access to funding and inadequate Government guidance. That is why Labour has launched the small business export taskforce with the Federation of Small Businesses to listen to business needs and address them head-on. What is the Minister doing to support hard-working SMEs in navigating the Government’s complex web of regulatory requirements and help unleash this untapped entrepreneurial potential?

We agree with the hon. Gentleman on the ambition, but he is probably behind the game a little in terms of what we are actually doing, not least in the 73 free trade agreements that we have agreed, including the comprehensive and progressive agreement for trans-Pacific partnership that is coming down the track. I hope that he will be supportive of that agreement. He has probably also never heard of the export support service, the international trade advisers and the export champions, all of which help our SMEs export to other parts of the word.

May I take this opportunity to congratulate and thank the Secretary of State—[Interruption.] Sorry, Question 2.