Chamber
Plenary, 11 Jun 2008
11 Jun 2008 · S3 · Plenary
Item of business
Small Business Bonus Scheme
I have looked forward to the debate for some time, and not just because I, too, can declare as an interest the fact that my constituency office is saving money, which will support the employment of another person—yes, another new job is being created.
There is no doubt in my mind that in a few years the small business bonus scheme will be seen to have had a hugely positive effect on towns, villages and local shopping areas around Scotland—the benefits are already visible in my constituency—and I am sure that we will come back to it before 2011.
Business rates for small businesses have been slashed. I am sure that there is not a single MSP who will not be able to point to small businesses in their areas that have experienced a major boost to their income and expenditure figures. I challenge members who are lukewarm about the policy—Labour members appear to be even more negative than that—to express their faint praise to those small businesses for whom it has been a lifeline. I would be happy to provide John Park with numerous examples of such businesses in my constituency, every one of which I am sure would be glad to speak to him about what a great boon they consider the small business bonus scheme to have been.
Is it enough? In truth, no amount of money will ever be enough—we know that. Arguments can always be made for the provision of more money, and I expect that more than one of us have received letters and e-mails from businesses that do not qualify for the scheme, in which they express their disappointment at being left out. However, we must start somewhere, and it does seem right that we have started with very small businesses.
I have to pinch myself when I hear what some members say because, make no mistake, we are not talking about huge businesses. The businesses in question are tiny; most likely, they involve one self-employed person, who perhaps has one or two employees, who will probably be family members. When we support such businesses—that seems a very grand word to use for some of them—we are supporting families and keeping people away from the dole queue. Just as important, we are contributing to the survival of some of our smallest and most marginal communities. How on earth can any of that be wrong?
The removal of one big bill from the annual expenditures of such microbusinesses shows that this Government means business when it says that it wants to foster a can-do atmosphere in Scotland. For once, business leaders are in agreement about a Government policy. The FSB—the voice of small businesses—has been unequivocal in its support and has made helpful suggestions about how the policy can be made even more effective. I commend to the minister the various points that it has made about the dissemination of information and the possibility of retrospective claims; the minister has already conceded an independent assessment.
These are very difficult times for businesses of any kind. Fuel costs are rising, so prices are rising, too. Households are beginning to cut back on discretionary spending. I am in no doubt about the fact that the scheme's existence this year will have kept open some businesses that would otherwise have had to shut their doors. The cost to society of such business closures is far greater than the immediate effect might suggest. Job losses, even on a small scale, add up across the country. Business closures mean loss of family income and the possibility of debt and worse. Preventing that represents a major contribution to the health of Scotland. Small businesses in England and Wales have made it clear that they would give their eye teeth for the same scheme to be applied in their countries.
More than 5,000 businesses in Perth and Kinross have a rateable value of less than £8,000. In 2009-10 alone, they will save, on average, £1,360. Another 900 or so businesses will save an average of between £1,340 and £1,870. That is a lot of money in just one area of Scotland. Someone said that it almost does not matter what that money is spent on, because it will be spent in the community in some way, shape or form. It is not just figures on paper: it is real people behind real counters with real shop fronts on real high streets. It is not just high streets, though; down the side streets of Perth members will meet new shop owners who will openly tell them what a difference the scheme has made to their first-year projections. I can tell the Lib Dems that one shop owner is married to a former Lib Dem official who is equally effusive about the policy.
It is not just shops; it is also the tradesmen who can stay on in their premises, or move into premises out of their vans or take on extra help when they need it. Even in the current climate, new businesses are opening in small towns such as Crieff and Auchterarder and are already making a difference to them. I have no doubt that a factor in their calculations was the removal of the huge rates burden that they would otherwise have had to bear.
Existing businesses that have benefited in the same towns might otherwise have struggled to cope with the current situation. In my home town of Crieff, I see with my own eyes the change in the shopping streets as small business after small business opens its doors. Let the doomsayers croak on; the truth is that I could introduce them to any number of people who would tell them how welcome and important the scheme is and what it says about a Government that is determined to encourage business with all the tools at its disposal. Would that we had the tools that would allow us to make a difference to much bigger businesses.
There is no doubt in my mind that in a few years the small business bonus scheme will be seen to have had a hugely positive effect on towns, villages and local shopping areas around Scotland—the benefits are already visible in my constituency—and I am sure that we will come back to it before 2011.
Business rates for small businesses have been slashed. I am sure that there is not a single MSP who will not be able to point to small businesses in their areas that have experienced a major boost to their income and expenditure figures. I challenge members who are lukewarm about the policy—Labour members appear to be even more negative than that—to express their faint praise to those small businesses for whom it has been a lifeline. I would be happy to provide John Park with numerous examples of such businesses in my constituency, every one of which I am sure would be glad to speak to him about what a great boon they consider the small business bonus scheme to have been.
Is it enough? In truth, no amount of money will ever be enough—we know that. Arguments can always be made for the provision of more money, and I expect that more than one of us have received letters and e-mails from businesses that do not qualify for the scheme, in which they express their disappointment at being left out. However, we must start somewhere, and it does seem right that we have started with very small businesses.
I have to pinch myself when I hear what some members say because, make no mistake, we are not talking about huge businesses. The businesses in question are tiny; most likely, they involve one self-employed person, who perhaps has one or two employees, who will probably be family members. When we support such businesses—that seems a very grand word to use for some of them—we are supporting families and keeping people away from the dole queue. Just as important, we are contributing to the survival of some of our smallest and most marginal communities. How on earth can any of that be wrong?
The removal of one big bill from the annual expenditures of such microbusinesses shows that this Government means business when it says that it wants to foster a can-do atmosphere in Scotland. For once, business leaders are in agreement about a Government policy. The FSB—the voice of small businesses—has been unequivocal in its support and has made helpful suggestions about how the policy can be made even more effective. I commend to the minister the various points that it has made about the dissemination of information and the possibility of retrospective claims; the minister has already conceded an independent assessment.
These are very difficult times for businesses of any kind. Fuel costs are rising, so prices are rising, too. Households are beginning to cut back on discretionary spending. I am in no doubt about the fact that the scheme's existence this year will have kept open some businesses that would otherwise have had to shut their doors. The cost to society of such business closures is far greater than the immediate effect might suggest. Job losses, even on a small scale, add up across the country. Business closures mean loss of family income and the possibility of debt and worse. Preventing that represents a major contribution to the health of Scotland. Small businesses in England and Wales have made it clear that they would give their eye teeth for the same scheme to be applied in their countries.
More than 5,000 businesses in Perth and Kinross have a rateable value of less than £8,000. In 2009-10 alone, they will save, on average, £1,360. Another 900 or so businesses will save an average of between £1,340 and £1,870. That is a lot of money in just one area of Scotland. Someone said that it almost does not matter what that money is spent on, because it will be spent in the community in some way, shape or form. It is not just figures on paper: it is real people behind real counters with real shop fronts on real high streets. It is not just high streets, though; down the side streets of Perth members will meet new shop owners who will openly tell them what a difference the scheme has made to their first-year projections. I can tell the Lib Dems that one shop owner is married to a former Lib Dem official who is equally effusive about the policy.
It is not just shops; it is also the tradesmen who can stay on in their premises, or move into premises out of their vans or take on extra help when they need it. Even in the current climate, new businesses are opening in small towns such as Crieff and Auchterarder and are already making a difference to them. I have no doubt that a factor in their calculations was the removal of the huge rates burden that they would otherwise have had to bear.
Existing businesses that have benefited in the same towns might otherwise have struggled to cope with the current situation. In my home town of Crieff, I see with my own eyes the change in the shopping streets as small business after small business opens its doors. Let the doomsayers croak on; the truth is that I could introduce them to any number of people who would tell them how welcome and important the scheme is and what it says about a Government that is determined to encourage business with all the tools at its disposal. Would that we had the tools that would allow us to make a difference to much bigger businesses.
In the same item of business
The Presiding Officer (Alex Fergusson):
NPA
The next item of business is a debate on motion S3M-2102, in the name of Jim Mather, on the small business bonus scheme.
The Minister for Enterprise, Energy and Tourism (Jim Mather):
SNP
I am delighted to open this debate on the impact of the small business bonus scheme. The introduction of the new scheme on 1 April marked an important stage ...
Johann Lamont (Glasgow Pollok) (Lab):
Lab
The minister said that, as a listening Government, it received the message from the business community that what was happening was a disincentive. Is he awar...
Jim Mather:
SNP
I have not heard that message directly from the housing associations. We deal with them in my constituency as a key sector in the economy. I look forward to ...
John Park (Mid Scotland and Fife) (Lab):
Lab
Will the minister explain how he can guarantee that there will be increased investment from smaller companies that will lead to more jobs and greater economi...
Jim Mather:
SNP
I regret that John Park has a zero-sum game mentality. The Government is putting business in the driving seat, and business has a sense of obligation. Let us...
Tavish Scott (Shetland) (LD):
LD
On the minister's point about his discussions with business, is his position on regulation still that it should be one in and one out?
Jim Mather:
SNP
We have a mature approach with the regulatory reform group. Better regulation is the objective and the process, and it has to be the focus. I can assure Tavi...
John Park:
Lab
Would it be appropriate for you to make available the names of the companies that you are talking about today? It would be useful for us in the wider debate.
Jim Mather:
SNP
There are plenty examples from around the country. I advise John Park to do what I did the other day, which was to walk around Oban and Rothesay and talk to ...
The Presiding Officer:
NPA
Before I call Elaine Murray, I remind all members that contributions should always be made through the chair, which means referring to members by their chose...
Elaine Murray (Dumfries) (Lab):
Lab
I ought to start by declaring an interest as one of the people who has received a small business bonus. That is probably true of many members who run offices...
Gavin Brown (Lothians) (Con):
Con
In 2000, Jack McConnell ended the uniform business rate that applied to both Scotland and England. Was that a good result for businesses in Scotland?
Elaine Murray:
Lab
As I was just about to explain–and as has been long rehearsed over the years—business rates comprise two factors: poundage, which at that point increased in ...
Derek Brownlee (South of Scotland) (Con):
Con
The minister is often attacked—not without cause—for bewildering people with management gobbledegook, but today I will forgive him his mention of Deming beca...
Elaine Murray:
Lab
I offer a brief correction. I said:"Tax cuts are always popular with the beneficiaries."
Derek Brownlee:
Con
I stand corrected. On the subject of correction, the establishment of a town centre regeneration fund was a policy in the Conservative manifesto, as Elaine M...
Liam McArthur (Orkney) (LD):
LD
Small businesses are the lifeblood of our economy. The contribution that they make to the diversity, competitiveness and resilience of our economy is immense...
Derek Brownlee:
Con
I accept the logic behind Mr McArthur's argument. Do the Liberal Democrats think that that logic should also apply to other Government interventions to assis...
Liam McArthur:
LD
I would not disagree with that point, but it does not seem to reinforce the point that Derek Brownlee has just made in his speech. Good governance and sound ...
Gavin Brown:
Con
Will the member give way?
Liam McArthur:
LD
I am sorry, but I must make progress.I am astonished that, amid their self-congratulation, Mr Brownlee and his colleagues cannot bring themselves to support ...
Gavin Brown:
Con
Will the member give way?
Liam McArthur:
LD
No.Our amendment also provides the basis on which to address the concerns that underlie the Labour amendment. Skills, energy efficiency and, of course, physi...
Roseanna Cunningham (Perth) (SNP):
SNP
I have looked forward to the debate for some time, and not just because I, too, can declare as an interest the fact that my constituency office is saving mon...
John Park (Mid Scotland and Fife) (Lab):
Lab
I have been consistent on this issue since entering Parliament last year and I made my views known in one of my first speeches. Reductions in business rates ...
Roseanna Cunningham:
SNP
Just exactly what size of business does the member think that he is talking about when he talks about fleets of cars? Most of the businesses benefiting from ...
John Park:
Lab
That is why we want to give those businesses more investment and ensure that the public infrastructure is there to support their businesses, rather than just...
Alasdair Allan (Western Isles) (SNP):
SNP
As other members have done, I declare an interest in as much as my office pays rates.Whatever our arguments today, there can, I hope, be no disagreement abou...
David Whitton (Strathkelvin and Bearsden) (Lab):
Lab
Just as the sun shines, I stand up. Does Mr Allan think that it is an economic benefit to the Western Isles that the minister turned down the Lewis wind farm...