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Business Support: Rural Areas

Business and Trade – in the House of Commons at on 13 March 2025.

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Photo of Jamie Stone Jamie Stone Liberal Democrat Spokesperson (Armed Forces), Chair, Petitions Committee, Chair, Petitions Committee

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

Photo of Gareth Thomas Gareth Thomas Parliamentary Under Secretary of State (Department for Business and Trade)

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.

Photo of Jamie Stone Jamie Stone Liberal Democrat Spokesperson (Armed Forces), Chair, Petitions Committee, Chair, Petitions Committee

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.

Photo of Lindsay Hoyle Lindsay Hoyle Speaker of the House of Commons, Chair, Speaker's Committee for the Independent Parliamentary Standards Authority, Chair, Speaker's Committee for the Independent Parliamentary Standards Authority, Chair, House of Commons Commission, Chair, Speaker's Committee on the Electoral Commission, Chair, Speaker's Committee on the Electoral Commission, Chair, Members Estimate Committee, Chair, Members Estimate Committee, Chair, Restoration and Renewal Client Board Committee, Chair, Restoration and Renewal Client Board Committee, Chair, Speaker's Conference (2024) Committee, Chair, Speaker's Conference (2024) Committee

You might get a chocolate biscuit these days.

Photo of Gareth Thomas Gareth Thomas Parliamentary Under Secretary of State (Department for Business and Trade)

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.

Photo of Lindsay Hoyle Lindsay Hoyle Speaker of the House of Commons, Chair, Speaker's Committee for the Independent Parliamentary Standards Authority, Chair, Speaker's Committee for the Independent Parliamentary Standards Authority, Chair, House of Commons Commission, Chair, Speaker's Committee on the Electoral Commission, Chair, Speaker's Committee on the Electoral Commission, Chair, Members Estimate Committee, Chair, Members Estimate Committee, Chair, Restoration and Renewal Client Board Committee, Chair, Restoration and Renewal Client Board Committee, Chair, Speaker's Conference (2024) Committee, Chair, Speaker's Conference (2024) Committee

I call the Shadow Minister.

Photo of Harriett Baldwin Harriett Baldwin Shadow Minister (Business and Trade)

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?

Photo of Gareth Thomas Gareth Thomas Parliamentary Under Secretary of State (Department for Business and Trade)

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.

Cabinet

The cabinet is the group of twenty or so (and no more than 22) senior government ministers who are responsible for running the departments of state and deciding government policy.

It is chaired by the prime minister.

The cabinet is bound by collective responsibility, which means that all its members must abide by and defend the decisions it takes, despite any private doubts that they might have.

Cabinet ministers are appointed by the prime minister and chosen from MPs or peers of the governing party.

However, during periods of national emergency, or when no single party gains a large enough majority to govern alone, coalition governments have been formed with cabinets containing members from more than one political party.

War cabinets have sometimes been formed with a much smaller membership than the full cabinet.

From time to time the prime minister will reorganise the cabinet in order to bring in new members, or to move existing members around. This reorganisation is known as a cabinet re-shuffle.

The cabinet normally meets once a week in the cabinet room at Downing Street.

Front Bench

The first bench on either side of the House of Commons, reserved for ministers and leaders of the principal political parties.

shadow

The shadow cabinet is the name given to the group of senior members from the chief opposition party who would form the cabinet if they were to come to power after a General Election. Each member of the shadow cabinet is allocated responsibility for `shadowing' the work of one of the members of the real cabinet.

The Party Leader assigns specific portfolios according to the ability, seniority and popularity of the shadow cabinet's members.

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Minister

Ministers make up the Government and almost all are members of the House of Lords or the House of Commons. There are three main types of Minister. Departmental Ministers are in charge of Government Departments. The Government is divided into different Departments which have responsibilities for different areas. For example the Treasury is in charge of Government spending. Departmental Ministers in the Cabinet are generally called 'Secretary of State' but some have special titles such as Chancellor of the Exchequer. Ministers of State and Junior Ministers assist the ministers in charge of the department. They normally have responsibility for a particular area within the department and are sometimes given a title that reflects this - for example Minister of Transport.

Chancellor

The Chancellor - also known as "Chancellor of the Exchequer" is responsible as a Minister for the treasury, and for the country's economy. For Example, the Chancellor set taxes and tax rates. The Chancellor is the only MP allowed to drink Alcohol in the House of Commons; s/he is permitted an alcoholic drink while delivering the budget.