Tag: Sajid Javid

Below is the text of the speech made by Sajid Javid, the Secretary State of Business, Skills and Innovation, at the British Chambers of Commerce on 3 March 2016.

Good morning everyone.

Let me start by saying it’s a real pleasure to be here.

Over the past year I’ve spoken at least half a dozen local Chamber of Commerce events, everywhere from Westminster to Birmingham to Durham.

At this rate I’m not quite going to make it round all 52 chambers before the next election!

But I know that with a membership of 100,000 companies employing almost 5 million people, there’s no better way to take the pulse of British industry than to talk to the BCC.

As far as I’m concerned, you really are the voice of business in this country.

Now the name of this session is ‘New Dawn or Back to the Future’.

So in that spirit let’s hop into our DeLorean, get up to 88 miles per hour and travel back in time to 1978!

I’m a 9-year-old schoolboy in Bristol, with a full head of thick, dark hair.

A short walk from here, in Downing Street, Prime Minister James Callaghan is, just about, clinging on to power.

One of his administration’s final acts is to throw more than £50 million of taxpayers’ money at the creation of an American carmaker. The DeLorean Motor Company. In return for the government covering half of the company’s start-up costs, DMC bases itself in Northern Ireland.

But construction of its factory is plagued by delays.

The cars themselves quickly win a reputation for being poorly made, overpriced and unreliable.

Fewer than 10,000 are ever built.

And after just 4 years the company goes bankrupt – taking a thousand jobs and a vast pile of taxpayers’ money with it.

In the end, DeLorean provided the world with 2 things.

The basis of Doc and Marty’s fictional time machine.

And an all-too-real case study of what government involvement in business should not look like.

You see, nobody knows business like business.

And politicians who use taxpayers’ money to try and pick winners or take over private companies almost inevitably end up with egg on their face.

That’s why my approach to industry is very different to many of my predecessors.

I’m not singling out one industry or sector or company and trying to force it to be a success.

I’m working to create the conditions in which all businesses can thrive.

Now before I say more about that, let me address an important issue.

Because the media silence on this issue has been deafening, but you may have heard there’s a referendum coming up on the European Union!

Later this year we’re going to have a referendum, and we’ve all had to think hard about the decision we’re going to have to make.

I, personally, have no time for ever-closer political union.

But I accept the UK does well from being part of a 500-million strong single market.

I see the benefits of the many trade agreements that have been negotiated by Brussels in the 4 decades since we joined.

And I recognise that it could take many years to replicate that position following a British withdrawal.

Since the Single Market was launched it has added more than £200 billion a year to the EU economy in today’s prices.

However, regardless of whether we vote to stay or go, one thing is clear.

In 2016 we can’t afford to only trade with the close and the familiar.

The world is too big, the international marketplace is too diverse to simply stick with our neighbours on the continent or our Anglophone allies in North America.

But on this incredibly important issue, my mind is made up.

It’s about head v heart and I thought with my head: for businesses, jobs and growth, remaining in the EU is the best answer.

Now at the start of this year, John Longworth had a very simple request for government.

He wanted to see deeds, not words.

Action, not reviews.

Decisions, not dithering.

Well, John, I like to think that’s exactly what we’ve been doing!

We’ve already delivered the lowest rate of corporation tax in the G7, set the investment allowance at its highest ever permanent level, and lifted thousands of people out of employer National Insurance contributions.

And in the previous Parliament we gained a unique distinction.

We became the first government in recent history to reduce overall levels of regulation.

Between 2010 and 2015 we cut £10 billion of red tape.

The World Economic Forum says the UK has the lowest burden of regulation in the G7.

And the proportion of businesses saying government regulation is a barrier to success fell from 62 per cent in 2009 to 51 per cent in 2014.

But that’s still too high.

So today I can tell you that we’re going to reduce the regulatory burden still further.

Under the Small Business, Enterprise and Employment Act, all governments are required to publish and report on their performance against a business impact target (BIT).

That’s the value of deregulation they hope to achieve, and how they plan to measure it.

This morning, we’re publishing a BIT of £10 billion.

That’s right – we want to cut the cost of regulation by another £10 billion.

It’s an ambitious target not just because of its size, but also because of its scope.

For the first time ever, the BIT doesn’t just cover the impact of legislation.

It also includes the way statutory regulators enforce existing rules.

Rather than being allowed to hide behind red tape, they’re going to have to look at the cost to business of the way they work.

We’re also introducing a new rule for government departments.

In the last Parliament we introduced a policy called ‘One in, two out’.

It meant that every time a new regulation that cost money to comply with was introduced, the government had to remove or modify existing rules with double the cost to business.

For every 1 pound of regulatory burden we created, 2 pounds worth had to be removed.

Today I can announce that we’re upgrading that to ‘One in, three out.

If departments want to bring in new regulatory costs for things that weren’t in our manifesto, they will be expected to find savings worth 3 times as much.

This won’t be easy to achieve.

But it will certainly focus the minds of policymakers.

It’s very easy for a Whitehall bureaucrat to come up with an idea that looks great on paper and, with the stroke of a pen, place a huge extra burden on businesses.

But if that same civil servant has to also find ways to remove 3 times as much red tape, they’ll think twice before putting new regulations in place.

We’re also bringing departments, regulators and businesses together for a rolling programme of Cutting Red Tape reviews.

The first 3 of these reviews, covering waste, energy and adult social care, are being published today.

And you’ll be pleased to hear that they’re not just languishing on the dusty shelves of Whitehall.

They’re being used to implement real change.

So John, while we have brought you reviews, we have also brought you action!

For example, the waste review found that delays and unnecessary burdens associated with the environmental permit system cost legitimate businesses millions of pounds a year.

By the end of this month, the Department for the Environment, Food and Rural Affairs will publish revised guidance that makes the whole process a lot less burdensome.

The energy review revealed that existing rules led to some businesses being charged for both generating and storing energy.

That cost one company alone, for example, £10 million extra a year.

Following the review, the Department of Energy and Climate Change is now consulting on whether to update the regulations, a move that could benefit consumers, businesses and the environment.

And the adult social care review found that care homes in England have to deal with inspections by local authorities, clinical commissioning groups, the Care Quality Commission, their local fire service, the Health and Safety Executive, and independent organisations like Healthwatch.

Over the course of a year that’s 1 inspection every 8 weeks! And they often involve the same people being asked the same questions.

As a result, the Department for Health and the Department for Communities and Local Government are putting in place a new action plan.

It will make co-ordination between all those bodies the norm rather than a novelty.

Finally, I am today launching a root and branch review of the way local authorities regulate businesses.

For many businesses, especially smaller ones, your local council is the arm of government you have the most contact with. And it can also be the source of a huge amount of troublesome red tape, much of it built up over many years without being properly reviewed and updated.

The review’s findings will be shared right across government, going to all relevant departments and regulators.

And its aim is to agree a set of reforms, covering both legislation and enforcement, that will reduce unnecessary costs and burdens on business.

It all comes down to my fundamental view that government should stand behind business rather than in your way.

That regulation should provide necessary protection for consumers, for employers, for employees, without making it harder for you to make a living.

I grew up above the family business. I spent most of my adult life working in business. I know just how hard it is to make a business work.

And how that task gets infinitely harder when you have to deal with petty, pointless bureaucracy.

That’s why I’m different to many previous Business Secretaries. Because I trust you to get on with what you do so well. I don’t believe that you need someone from the government peering over your shoulder all the time.

I know that the vast, vast majority of British businesses are run by responsible, hardworking men and women who know their jobs much better than I do.

You deserve a regulatory regime that’s fit for business and fit for the future. And with me, that’s exactly what you’re going to get.

Thank you.

Below is the text of the speech made by Sajid Javid, the Secretary of State for Business, Innovation and Skills, at the Mansion House in London on 2 March 2016.

My Lord Mayor, ladies and gentlemen.

First of all I think I have to congratulate the Lord Mayor on his grasp of Klingon! I have my own favourite Klingon proverb:

…a leader is judged not by the length of his reign but by the decisions he makes.

Lord Mayor, I know you have only one year in the job, but I’m sure you’ll make some great decisions!

Let me begin by saying I’m delighted to reply to that toast, and by thanking you for the honour of inviting me to this important event in this beautiful, historic setting.

King Alfred and Alexander the Great are indeed hard acts to follow. When Alexander was 32 years old he cried salt tears because there were no more worlds left to conquer.

I’m 46 and I’ve won 2 elections in Bromsgrove. I feel I have some catching up to do.

Now, the statues of the great and good here remind me of a speech I gave this time last year, at another historic venue. That was the Chapter House in Westminster Abbey.

There’s a story that says the monks who used to run the building were deeply unhappy with the boisterous, rude politicians who used to work there.

So after Parliament moved out, they got their revenge, by painting various MPs into a depiction of the damned at the last judgement.

I’m a little worried that I’ll go back with my kids one day and they’ll spot a bald, brown guy in one of the paintings. If they do I’ll just say it’s Chuka Umunna!

Chuka’s not here is he?!

Mansion House regulars will have noticed that at this trade and industry dinner you don’t just have a new Lord Mayor – you also have a new Business Secretary. The first since 2010.

I’d like to take a moment to pay tribute to my hardworking predecessor, Sir Vince Cable. The longest-serving holder of this post since Sir Peter Thorneycroft back in the 1950s. And, more importantly, a veteran of 5 trade and industry dinners. That must be a record. A very hard record to beat.

I actually have a lot in common with my Liberal Democrat predecessor. I modelled my hairstyle on him, for example.

But I also share his sincere belief that business is a force for good. One that deserves the complete support of government at every level.

Of course, there are one or two differences in how we think that support should be offered. And you won’t be surprised to hear that!

Perhaps the biggest difference is in our approach to industry. Sir Vince’s Industrial Strategy was well-regarded among those it benefited. But its impact was strictly limited, offering support for just 11 tightly defined sectors of the economy.

That was great for the chosen few, who had all the resources of BIS standing behind them. But businesses outside the gilded circle took that to mean they didn’t matter to the government. That they were on their own.

When I was Secretary of State for Culture, Media and Sport, I frequently heard from members of our £80 billion creative industries that they didn’t feel valued. That they weren’t taken seriously, despite being global leaders in their field and employing millions of people. The same was true of our £100 billion tourism sector. And since taking up the reins at BIS I’ve heard similar complaints from across British business.

So it’s time for a change. Which is my strategy for industry – and yes I do have one – is different.

I’m not trying to pick winners. I’m working to create the conditions in which all British businesses can thrive.

My approach can best be described as non-interventionist but highly engaged. It’s about building on previous success, with a much wider dialogue. About listening to businesses from all sectors, working with them to remove barriers to growth and productivity, and creating the conditions in which they can thrive.

We’ll still be talking to and working with the main sector councils. They do great work and they know their areas better than anyone. But I’ve taken the old strategy’s closed shop and replaced it with an open door. A willingness to deal with representatives of all sectors and to respond positively to industry-led solutions.

This shift in focus is particularly important given the arrival of what has been dubbed the ‘fourth industrial revolution’. Advances in technology are challenging the tyranny of conventional wisdom and blurring the lines between traditional sectors.

The world’s biggest taxi company, Uber, doesn’t own a single taxi. The world’s biggest provider of accommodation, AirBNB, it doesn’t own a single hotel room. Or a multi-billion dollar media company, one of the largest in the world, Facebook, doesn’t create any original content.

Which sector does a start-up fall into if it designs, makes and sells bespoke knitwear using the latest technology? Is it creative? Is it manufacturing? Is it retail? Is it digital?

In a world where old labels are becoming increasingly meaningless, it makes no sense to build an industrial strategy around them. Business is changing and it’s only right that government’s way of interacting with it changes too.

That’s why I’ll be taking this new approach to industry. And that approach is the first of my 6 priorities.

Now, Friedman told us that in a free market, no exchange takes place unless both parties benefit. But lately it has often seemed that the opposite is true.

We’ve seen established interests trying to stop disruptive rivals from entering the marketplace. We’ve seen car buyers that have been lied to about emissions levels. We’ve seen growing businesses stopped in their tracks by barriers as diverse as unfair energy bills and burdensome regulations.

It’s not good for business, it’s not good for customers, and it’s not good for productivity. That’s why my second priority is to make markets work better – both for businesses and for consumers.

In line with the new approach to industry, we’re doing this through determined deregulation and a hands-off approach. We’re maintaining standards without stifling innovation or attempting to tell people how to run their businesses. We’re looking at ways we can use increased competition to raise the UK’s game on productivity. And we want to empower consumers, making it easier to understand what deals they’re being offered and how they can get the best one for them.

I want to see the Competition and Markets Authority and the economic regulators using their competition powers to maximum effect with the smallest possible burden on business. And that includes looking at specific markets to identify barriers to effective competition, and standing ready to act on the CMA’s flagship market investigations into banking and energy.

There’s also a role for government in repairing market failures. It’s not the job of the state to step in and prop up unviable businesses. But when a need isn’t being served, when demand isn’t being met, a carefully planned intervention can make a difference.

Five years ago Vince Cable stood here and he talked about plans for a Green Investment Bank. A world first, a unique vehicle to tackle risks associated with green infrastructure that the market was unable to adequately finance.

Now 5 years on, the GIB has been an unparalleled success. It has delivered over £10 billion of finance for over 60 projects. And it is making a 10% projected return on its investments.

But more than that, it has created a new market for such investments by showing that sustainable projects can deliver real returns. That environmentally friendly ideas can also be serious investment opportunities. That green really is the colour of money.

Back in June I explained that the time had now come for the GIB to stand on its own 2 feet, that we would move it into private ownership. And tonight I can announce that the formal sale process will begin tomorrow morning. I can see there’s at least one eager buyer here. But you’re going to have to wait until the morning.

We expect there to be significant interest in the market, as a range of financial institutions and pension funds seek to tap in to this successful asset class and green their own portfolios. And, as I said in the House of Commons last month, its unique green mission will be protected by the creation of a special share.

Now many of the GIB’s investments have helped cutting-edge innovative projects and these ideas have helped reach the mainstream. As we’ve already heard this evening, innovation is something we should nurture and sustain. Because, as the Lord Mayor himself said in a speech here last November “innovation means prosperity”.

And that’s why innovation is the third of my priorities. The UK has a long history as a hotbed of new ideas and new ways of thinking. We’ve all been taught how the incredible inventions of the late 18th and the early 19th centuries led to a golden age of British industry. And I firmly believe that we have the talent and potential to similarly dominate in the 21st century. But only if the government helps create a climate in which innovation can flourish.

We must have more intelligent regulation. We must improve access to finance. And, above all, we must help to develop the technology and skills businesses will need to compete in the 21st century market of ideas.

Building on the success of the plans to boost productivity and improve competition, I’m leading work on a government-wide innovation plan.

It will help ensure that the money invested by all departments in all forms of innovation is spent in an effective, joined-up manner. It will also help to focus Whitehall minds on the need for innovation within government. Every year we spend £250 billion on procurement – and innovation shouldn’t just be something for the private sector.

This government’s commitment to supporting innovation was made clear by the Spending Review, which protected our annual £4.7 billion spend on science and research. Funding that will be used to create everything from lifesaving medicines to world-changing inventions. And we’re making it easier for the private sector to innovate, with Research and Development tax credits, the Patent Box and Entrepreneurs’ Relief.

Of course, all the good ideas in the world won’t lead to economic success if we don’t have the skilled workforce that is needed to take them from drawing board to factory floor. And that’s why my fourth theme, building skills for the future, is so important.

The global marketplace is changing, and the British workplace is changing with it. The challenges we face today are very different to those that we faced just a generation ago, as are the skills required to compete. We neither can nor should attempt to compete with low-skill, low-wage emerging economies in a race to the bottom.

Instead, in order to deliver the high-wage, low-welfare economy we are aiming for, we must ensure that British workers have the training they need in order to take on the skilled jobs of the 21st century. There is excellent work going on in schools, in colleges and in universities to see that the next generation is properly equipped. And our commitment to deliver 3 million apprenticeships is already delivering real results.

However, the vast majority of people who will be working in Britain in the next 25 years are not in full-time education. They are already out there in the workplace. And the idea of a skill for life, of learning a trade, of never needing further training, is a thing of the past.

Fortunately, the new technology that is changing the workplace is also changing the way we study and learn. For example, the internet makes it easier than ever to deliver high-quality, scalable education outside the traditional classroom.

So I want to see a new focus on adult learning, part-time study and workplace training to give Britain’s workers the skills they need and they deserve.

I’m working on this with colleagues across government. I can’t tell you too much of the detail right now. But it’s something you’ll be hearing a lot more about it in the weeks and months ahead.

Now the fifth item on my to-do list regards maintaining and growing Britain’s status and reputation as a global trader.

Britain has always been a trading nation. As we just heard from the Lord Mayor. As Andrew Sentence wrote in the ‘Telegraph’ over the weekend, trade has underpinned British success and growth for almost a thousand years.

In fact the position of First Lord of Trade – the predecessor of the President of the Board of Trade – was created half a century before Walpole became the first Prime Minister.

We have unrivalled cultural and political ties with nations across the world. But in recent years we have not always excelled at turning them into profitable trade links. We can and must do better, particularly with emerging economies and new markets.

Our export strategy sets out some of the steps we’re taking to make this happen. I’m chairing the Export Task Force, bringing all of government to bear on the issue. You can’t fail to have noticed our new Exporting is GREAT campaign, bringing British businesses together with customers around the world. And when Mark Price arrives in the department later this year, at the top of his in-tray will be implementing the reforms of UK Trade and Investment that were put in train by Lord Maude.

UKTI has a wide-ranging and well-resourced worldwide network. I want to make sure it focuses all its energy on what really matters – supporting British exporters and attracting inward investment.

And let me take this opportunity to thank Lord Maude for all he has achieved as Minister of State for Trade and Investment. Over the past 3 decades, Francis has been a fantastic servant of his country, his party, his government and, above all, British trade and industry. I’m sure I speak for everyone here today when I say that he will be sorely missed, and wish him all the very best.

On the subject of international trade… Some of you may have missed it, as the media silence on this subject has been deafening. But later this year there will be a referendum on whether the UK should remain a member of the European Union.

Now I, personally, have no time for ever-closer political union. But, like the City Corporation, I accept the UK does well from being part of a 500-million strong single market. I see the benefits of the many trade agreements that have been negotiated by Brussels in the 4 decades since we joined. And I recognise that it could take many years to replicate that position following a British withdrawal.

However, regardless of whether we vote to stay or go, one thing is clear. In 2016 we can’t afford to only trade with the close and the familiar. The world is too big, the international marketplace is too diverse to simply stick with our neighbours on the continent or our Anglophone allies.

Finally, my sixth priority is to ensure that the benefits of business growth are felt not just here in the Square Mile but right across these islands. The United Kingdom is one nation, and we are a one nation government. Not a government for big business, or a government for the south east of England. But a government for the whole nation.

So supporting local growth is the forefront of my department’s work, including continuing the success of local growth deals. My department has played a key role in delivering the Northern Powerhouse and Midlands Engine, helping the region I was born in and the region where I now live to make the most of their incredible potential.

In line with my wider approach to industry, such support and interventions are led by those ‘closest to the action’. An entrepreneur in Stockton knows far more about the economic needs of the north east than a civil servant or politician sitting in Whitehall, and is far better placed to take the lead through fora such as Local Enterprise Partnerships.

So there you have it. Six themes, 6 ideas, 6 priorities, 6 goals. Taken together they form a vision for what is an ambitious strategy. But one that I believe we can, and should, reach out for.

Over the past 6 years, all of us – businesses and politicians alike – have worked hard to turn around Britain’s economy. We’ve gone from a record-breaking recession to record-breaking employment. From the world’s biggest bailout to world-leading growth. And it has been an incredible rise, but having gone from rescue to recovery, we now face a new task.

We have to build on what we have achieved. We have to consolidate our gains.

Doing so requires a new way of working, a new way of looking at business. It’s not enough to rely on what worked before. The world has already moved on and if we stand still we will be left behind. Change is well overdue in business policy, and change is what I am delivering.

Tonight I’ve set out what that change will look like. And I look forward to working with all of you to give British trade and industry the support it both needs and richly deserves.

Thank you.

Below is the text of the speech made by Sajid Javid, the Secretary of State for Business, Innovation and Skills, at the Savoy Hotel in London on 1 March 2016.

Thank you, Tim, and good evening everyone.

I see a lot of familiar faces here.

It’s always great to be asked to speak to organisations like the BVCA.

I was in finance a lot longer than I’ve been in politics, so it always feels a bit like coming home!

And it’s kind of fitting to be here at the Savoy, halfway between the Square Mile and Westminster, between my first career and my second.

Of course a lot has changed in your industry since I left Deutsche Bank in 2009.

For example, last month I saw that there’s a new kid on the VC block.

Sesame Street.

Seriously!

The company behind the children’s TV programme is going to invest in start-ups in education and health.

We’ll see finance brought to you by the letters I, P and O.

And, having met plenty of VC people during my time in the City, I’m confident that Oscar the Grouch will fit right in!

Don’t worry Rob, I’m not talking about you!

J. Paul Getty once said that the secret of success in business was to rise early, work late… and strike oil.

It’s sound advice, up to a point.

But most businesses need a more reliable source of finance.

And that’s where private equity and venture capital really come into their own.

Now, more than ever, you have a vital role to play in Britain’s economy.

And I’m proud to stand here tonight and say that the private equity and venture capital sector has the full support of the Business Secretary.

I know that’s not always been the case in the past.

It’s all too easy to paint you as vultures or parasites.

And let’s face it, no politician ever lost votes by being too harsh on people working in finance!

But such days are behind us.

I know just how important your work can be.

I know that, far from being the bloodsuckers of internet myth you actually breathe life into companies.

You don’t strip out jobs, you create them.

You put your money where your mouth is, and take the kind of calculated risks that benefit us all.

When I worked in emerging markets I saw, again and again, how a little faith from investors at the right time can make all the difference.

You take an idea, see its potential, and give it the boost it needs to become reality.

When you get it right, everyone wins.

And when you get it wrong… Well, you’re the biggest losers.

Fortunately that doesn’t happen very often!

BVCA members are currently investing more than £5 billion in more than 700 companies in the UK.

Together, those companies employ well over 100,000 people.

And of course the vast majority are SMEs with high growth potential, which means they’re likely to go on and create many more jobs in years to come.

It’s clear that your confidence is coming back.

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Equity investment in small businesses grew by more than 40% in the year to October.

You’re also making a real difference right across the country.

Three-quarters of BVCA members’ investment goes outside London.

You’ve recently doubled the level of investment in my home region, the West Midlands.

That’s a real boost for the region as we work to fire up the Midlands Engine.

And a real sign that you’re ready, willing and able to back exciting, innovative ideas wherever they may be.

That’s particularly important right now.

Last week I attended the annual conference of British manufacturers, I spoke there in fact.

And one message that came through loud and clear from all the speakers was that manufacturing is changing.

That industry is changing.

That as we enter this fourth industrial revolution the greatest demand in advanced economies is not going to be for raw materials, but for ideas.

New ways of thinking

New ways of working.

New ways of manufacturing.

In the past we’ve thought of cutting-edge start-ups as something limited to Silicon Valley and Tech City.

However, in 2016 those labels are becoming less important.

The lines between industry and technology are becoming blurred.

That change brings with it incredible potential for economic growth.

But only if the right finance and funding is available.

And only if the people holding the purse strings can match the vision and ambition of the innovators themselves.

That means you, by the way!

But I’m not going to tell you to go out on a limb on your own.

My department, and the government as a whole, is and will remain a committed partner in helping you support innovative companies to develop and grow.

The British Business Bank is playing an active and collaborative role.

So far its VC Catalyst, Angel Co-Fund and Enterprise Capital funds have facilitated new finance of almost £1 billion for nearly 500 businesses.

On top of that, the bank will shortly be calling for innovative and ambitious investment strategies for delivering debt and equity finance through the £400 million Northern Powerhouse Investment Fund.

So get your thinking caps on!

We’re also committed to delivering a tax system that incentivises investment in growth and innovation.

So far we’re offering Venture Capital Trusts (VCTs), the Enterprise Investment Scheme (EIS) and the Seed Investment Scheme.

And there’s no doubt this trio of measures are working.

In 2014 to 2015, VCTs issued £435 million of new shares and currently have investments in over a thousand companies.

And in one year alone the EIS facilitated more than £1.5 billion of investment in not far short of 3,000 businesses.

It’s pretty clear that it’s playing a pivotal role in supporting a vibrant, early stage equity culture.

In fact the schemes have proved so successful that we sought and secured State Aid approval for letting them provide additional support to knowledge intensive companies.

Exactly the kind of companies that will be shaping the future of British industry.

When those companies are ready to go public, we want it to be as easy as possible for them to do so.

That’s why we abolished stamp duty on Alternative Investment Market shares and made them eligible for ISA investments.

We have also worked with the London Stock Exchange as it has introduced such innovations as the High Growth Segment.

It allows high growth potential businesses to list on the main market with an initial free float of as low as 10%.

And of course we’re also doing everything we can to make Britain the best place in the world to start and grow a business.

So we’ve extended the doubling of small business rate relief until 2017.

We’ve cut corporation tax to the lowest level of any major economy.

We’ve lifted hundreds of thousands of businesses out of employer National Insurance contributions.

We’ve set the highest ever permanent level for the annual investment allowance.

And we’ve got Research and Development tax credits, the Patent Box and Entrepreneurs’ Relief, all of which encourage further investment in innovation and ideas.

We’ve slashed £10 billion of red tape for business, and are committed to cutting another £10 billion by 2020.

And the Enterprise Bill, currently before Parliament, will create a new Small Business Commissioner to give SMEs a stronger voice.

But we can do more, and we are doing more.

We need to ensure that the UK has the research base and the productivity levers in which innovative high-growth companies can start, grow and compete globally.

Last summer, as you may have seen, we launched a plan called Fixing the foundations.

It’s our cross-government plan for increasing productivity right across the economy.

Our vision for increasing long-term investment in people, capital and ideas, as well as making markets more dynamic.

That includes everything from increasing the quality and quantity of apprenticeships, to reforming the planning system, to changing the way the government supports growing companies who want to export.

Alongside this, at the Spending Review, I was able to secure an investment of almost £7 billion as part of the national science capital commitment.

I also protected today’s £4.7 annual billion resource funding in real terms.

Together, this underlines my commitment to keeping the UK a world leader in science and research.

We’ve created Catapult centres that help business and researchers turn great ideas into commercial reality.

And, building on this, we’ll shortly be publishing a National Innovation Plan to ensure the UK remains an international beacon for bright ideas.

The plan will bring together ideas, levers and investment from across government, so we can create the right conditions for businesses to innovate and grow.

These are the businesses that are the key to our country’s economic future.

And that’s why your role in backing them through their early development and growth phase is tremendously important.

But it’s not just about cold, hard cash.

Venture capital and private equity at its best is about more than just providing funding for companies to develop, grow or restructure.

It’s about nurturing talent too.

About helping talented yet inexperienced entrepreneurs to devise and implement long-term growth strategies.

About understanding what it takes to help a high-potential business through the development, early growth and scale-up phases.

And that’s where the people who been there and done that a thousand times before, people like the BVCA members here tonight, can really add something special to the mix.

It’s your wisdom, understanding and long-term commitment that brings the greatest rewards.

And that’s why you can do so much more than any politician or civil servant ever could.

You’ve been there, you’ve done that, you’ve seen what works and you know what doesn’t.

And it’s that knowledge, that experience, that will turn the next generation of great British ideas into the next generation of great British businesses.

That will turn exciting innovations into real-world jobs and growth.

What you do isn’t easy.

It isn’t easily understood and all too often it’s not even popular.

But it is absolutely vital to the future of our economy and our country.

And I’m proud to say that both myself and the government support you all the way.

Have a great evening.

Below is the text of the speech made by Sajid Javid, the Secretary of State for Business, Innovation and Skills , at the QEII Conference Centre in London on 24 February 2016.

It’s great to be here this morning.

And it’s great to see so many of the sector’s leading lights coming together to answer the big questions of our time.

What does the future hold for British manufacturing?

Can we compete in the face of cheap imports from emerging economies?

And are there any factories in the UK that haven’t been visited by George Osborne?

Apparently there’s a whole website devoted to photos of the Chancellor wearing hard hats and high-vis jackets…

We’re British.

And, as you have just heard from the Prime Minister, that means we make things.

We always have.

We always will.

We invented modern industry, and we’ve played a role in countless technological leaps forward since.

We can be proud of our manufacturing heritage.

And we should be equally positive about Britain’s manufacturing future.

Sadly that doesn’t seem to be a fashionable thing for politicians and commentators to say right now.

Sometimes I turn on the radio or open the newspaper and all I get is negativity, people talking you down.

“Manufacturing is in terminal decline,” they say.

“We don’t build anything anymore.”

“We’re just a service economy.”

Nonsense.

When I look at manufacturing, when I look at the people in this hall, I don’t see malaise.

I don’t see failure.

I see people who are creating jobs, creating growth.

I see the people who are building what Britain needs and what the world wants.

Yes, the first decade of this century was one of industrial decline in Britain.

But over the past 6 years, manufacturing output is up.

Jobs are up.

Exports are up.

Britain’s manufacturing base spans almost 90,000 employers and provides work for millions of people.

Just this morning, we’ve heard that Aston Martin is creating 750 skilled manufacturing jobs in Wales.

Foreign direct investment is up more than 60% since 2010.

You represent the most innovative and intensive R&D sector in the UK, accounting for £13 billion of investment each year.

And over the past decade manufacturing productivity has increased 3 times faster than the economy as a whole, something reflected in today’s EEF report.

2015 was the most successful year ever for our £23 billion aircraft industry, with delivery numbers up 44% since 2010.

A new car rolls off a British production line every 20 seconds, with 80% destined for export.

The world flies in British-built planes and drives British-built cars.

And as I never get bored of pointing out, the Australians are throwing British-made boomerangs.

I know that not all British manufacturers are part of this boom.

Unprecedented conditions in the international steel market have had a devastating effect on too many British communities.

And the recent announcement by Bombardier was absolutely crushing for hundreds of skilled, hardworking people in Belfast.

As we have repeatedly shown, when such challenges arise this government will do everything within its power to support the companies and people affected.

And that includes not talking down the rest of the sector.

Not losing sight of the fact that British manufacturing can boast success after success.

It’s a sector we should all be proud of.

And in the EEF it has a very worthy champion.

The challenge is to maintain that success in a period of rapid technological change.

Whether you call it ‘Industry 4.0’ or the ‘fourth industrial revolution’, it’s impossible to deny that the way in which we live and work is undergoing a seismic shift.

While that can bring incredible benefits for the consumer, we have to acknowledge that change is also going to disrupt the workplace.

As long ago as 2013, Oxford academics warned that half of all jobs could be computerised within the next 2 decades.

Last year, McKinsey said that 45% of current jobs could be adequately performed by technology that already exists.

The University of Massachusetts has even created a computer programme that can write and deliver speeches for politicians!

If you see a machine being lined up to take your job, it’s little consolation to know that the resulting rise in productivity will help the overall economy.

But again and again through the history of manufacturing, we have seen how new inventions, new ideas and new technologies actually create new opportunities for workers.

We just can’t always see what they are until they arrive.

After all, the job descriptions of the future have yet to be written.

The role of government is not to stand on the beach and attempt to turn back the tide of change.

It’s to do all we can to help you ride the wave it creates.

Minimising the negatives while making the most of the limitless opportunities on offer.

But I’m not going to stand here and tell you how you should respond to this change.

There are a lot of important and influential individuals speaking here today.

A lot of very clever people.

But no politician or journalist or think-tank wonk knows manufacturing like you do.

Only you can decide the right way forward for your business.

Only you can make the most of the opportunities brought by new technology and new insights.

And only you can navigate the risks.

That doesn’t mean you’re entirely on your own.

For one thing you have the EEF supporting you.

And you also have a Business Secretary who is on your side.

Manufacturing matters to Britain.

It matters to this government.

And it matters to me personally.

Manufacturing is in my blood.

Fifty-five years ago, in 1961, my father Abdul landed in this country for the first time.

He headed north to Lancashire, then the home of countless cotton mills.

And every morning he got up, and he queued outside one of those mills.

And eventually the foreman invited him in and offered him his first job.

Fast forward a decade, and the soundtrack of my childhood was the clattering of my mother’s Singer sewing machine.

She was making the clothes to be sold on my dad’s market stall.

So I grew up in a home where manufacturing was the bedrock of success.

A home where we had what we had because my parents made things.

And I will never forget the lessons I learned there.

That’s why I know how vital your work is.

That’s why I’m absolutely passionate about what you do.

And that’s why I’m proud to say that I respect the EEF, I listen to what you have to say and I act on it.

Earlier this month an EEF survey found that half of companies say their internet connectivity, while fine for now, will not be suitable for their future needs.

Off the back of that survey, the EEF called for a government review of business broadband.

Today, I can announce that that’s exactly what will happen.

Working alongside the Department for Culture, Media and Sport, we will look at the broadband speeds that businesses need now and in the future.

We will look at the barriers that exist for businesses to get the affordable, high speed broadband they need.

And we will look at the whole issue of leased lines and the role they play in the market.

In doing so, we will take in to account Ofcom’s review of digital communications, which will be published tomorrow, and its review of leased lines, to be published next month.

We recognise that leased lines need to be competitively priced.

We want to see charge controls on leased lines where appropriate, and, of course, we want to see more competition in the provision of broadband services and products.

Of course, that’s not all we’re doing for manufacturing.

We’re also investing in your future success.

We’ve had to make a lot of tough decisions over the past 6 years, to get the economy back on track.

But I’m not afraid to invest where it can really make a difference.

I know that the inspired ideas of today are the profitable businesses of tomorrow.

So at last year’s Spending Review I was proud to secure an investment of almost £7 billion as part of the national science capital commitment. The highest ever. And I also won protection for the annual £4.7 billion government funding for science, research and development.

We also fund a third of the High Value Manufacturing Catapult, which has seen £300 million invested in just 5 years.

The Catapult helps manufacturers turn innovative research into real-world success.

And when you achieve that success, when your new product starts making money, I don’t believe you should be penalised for it.

Your profits should go to you – not the government.

So we have the lowest corporation tax of any G7 nation.

We’re reviewing business rates.

And we’re using the tax system to encourage and support the kind of cutting-edge thinking that makes British manufacturing a world leader.

Since last month the annual investment allowance has been set at its highest-ever permanent level, £200,000.

The Research and Development Tax Credits scheme underpins work worth more than £14 billion at more than 18,000 companies.

It’s backed up with the Patent Box, offering a significantly reduced corporation tax rate for companies that invest in new ideas.

One thing I’m never going to let the state do is strangle innovative manufacturers with red tape.

Never mind the fourth industrial revolution…

Sometimes feels like there are corners of Whitehall where they’re still getting to grips with first one!

And if government regulators attempt to keep up with the pace of change in manufacturing and industry, only one thing will happen.

A blizzard of directives, outdated before they’re even published, will stop innovative manufacturers in their tracks.

You can’t write a rule book for ideas that haven’t been thought up yet.

But that doesn’t have to mean a free-for-all that puts workers and consumers at risk.

Look at our approach to driverless cars.

They clearly have a major role to play in the future of global transport, and I want Britain to be right at the forefront of their development.

So rather than imposing a complex web of regulations for developers and manufacturers, we’ve created a simple code of conduct that ensures basic safety standards are met.

There’s no doubt that manufacturing is moving forwards, and that the government is doing all it can to support that.

But for too long the way we look at and measure what you do has been stuck in the past.

Looking at the raw output figures and concluding that manufacturing represents 10% of our economy is far too simplistic.

In a complex, intertwined global economy we have to recognise the whole of the manufacturing value chain.

That is, all those activities that take place upstream and downstream of production.

So I welcome the independent metrics report undertaken by Professor Sir Mike Gregory and his expert team, and published today on GOV.UK.

Mike and his team looked at opportunities for improving our understanding and measurement of modern manufacturing activity and they’ve developed a number of interesting proposals.

These include a representation of the manufacturing value chain that suggests it provides employment to more than 5 million people; pilot exercises testing the potential of data analytics to supplement national data and provide new insights on modern manufacturing activity; and, for the first time, a detailed looked at digital-era business models and their interaction with the value chain.

When we underestimate the contribution manufacturers make to the economy, we are doing you all a disservice.

Sir Mike’s review isn’t an attempt to move the goalposts or fiddle the figures.

It’s about giving you the credit you so richly deserve.

The mill my father worked in has, like many others, long since closed its doors.

But that doesn’t mean Britain no longer manufactures textiles.

Today, we have companies like Unmade.

Run by a trio of Royal College of Art graduates, Unmade uses the latest technology to let shoppers customise and manufacture their own unique knitwear.

Everything is bespoke, with zero waste and a minimum commercial order of one.

Yes, it’s still a small, niche business.

But as I always say, even the biggest company started out as one or two people with an idea and the get-up-and-go to make it happen.

And Unmade is an important example.

Because the future of British manufacturing is not a race to the bottom against emerging economies with standards as low as their prices.

The future lies in quality and innovation.

In doing things other countries simply haven’t figured out how to do yet.

You can’t undercut ideas.

The industry in which you work is changing.

But we cannot allow British manufacturing to be left behind.

And I will not allow British manufacturing to be left behind.

You led the world before.

In many areas you lead the world today.

And, as Business Secretary, it is my personal mission to see that you continue to lead the world for many years to come.

Thank you.

Below is the text of the speech made by Sajid Javid, the Secretary of State for Business, Innovation and Skills, at the London Stock Exchange on 22 February 2016.

Thank you, Xavier, for that warm introduction.

And thank you for letting me have the honour of the opening the world’s greatest stock exchange a few moments ago.

I’m sure we all agree that if the FTSE closes up today, it will be because of the uniquely skilled way the market was opened this morning!

And if it goes down…

Well let’s just say I was never here!

Seriously, it’s great to be back in the City.

My 20-odd years with Chase Manhattan and Deutsche Bank took me all over the world.

But whenever I found myself in their Square Mile offices, it really felt like I’d come home.

And it’s a particular pleasure to be here today of all days.

Because this morning I get to see for myself some of the wonderful, inspiring British businesses in the LSE’s latest 1,000 companies list.

Too often politicians get dazzled by the big brands.

The household names.

The multinationals employing tens of thousands of people.

But even the biggest company started life as nothing more than one or two people with an idea.

And the small- and medium-sized companies of today, the ones listed in this report, are the big names of tomorrow.

That’s not just rhetoric.

The thousand companies in this list are experiencing average annual growth of 50%.

That’s an incredible figure, one that really shows how SMEs are powering the economic recovery.

The diversity of the companies listed here is inspiring too.

For one thing, they represent the whole of the UK.

This isn’t London navel-gazing.

There’s more than 100 in the North West of England, almost 200 across the Midlands.

We’ve got companies in Aberdeen, in Bristol…

And I wouldn’t be doing my job as a constituency MP if I didn’t highlight that there are 2 in Bromsgrove: Crown Domestic Appliances and Oakland International.

So well done to everyone who has made it onto this year’s list.

But particularly those 2!

The spread of companies isn’t just geographical.

They also cover a huge range of sectors, from IT to advertising to financial services.

And about a quarter of them are involved in some kind of manufacturing or engineering.

A lot of people think that industry is a thing of the past, that it’s all about the service sector now.

But these fast-growing, dynamic innovative companies show that Britain still has a real future in skilled manufacturing.

And that’s great to see.

For all that diversity, there are a few common threads linking these firms together.

One of those is their commitment to innovation and investment.

That’s what makes the difference in achieving such high growth returns year-on-year.

And that’s something the government, and my department in particular, are really serious about supporting.

Last summer, you may have seen, we launched a plan called ‘Fixing the foundations’.

It’s our cross-government plan for increasing productivity right across the economy.

Our vision for increasing long-term investment in people, capital and ideas, and making markets more dynamic.

That includes everything from increasing the quality and quantity of apprenticeships, to reforming the planning system, to changing the way the government supports growing companies who want to export.

But that’s not all.

With the right support, the inspired ideas of today can become the businesses of tomorrow.

So, at the Spending Review, the Chancellor announced an investment of almost £7 billion as part of the national science capital commitment.

He also protected today’s annual £4.7 billion resource funding in real terms.

Together, this underlines our commitment to keeping the UK a world leader in science and research.

We have also created Catapult centres that help business and researchers turn great ideas into commercial reality.

They cover 11 new and emerging technologies in areas where there are world-leading research capabilities in the UK.

Building on this, we’ll shortly be publishing a National Innovation Plan to ensure the UK remains an international beacon for bright ideas.

The plan will bring together ideas, levers and investment from across government, so we can create the right conditions for businesses to innovate and grow.

Of course, as Anthony Browne from the BBA says in today’s report, ambitious companies need finance in order to grow.

Banks provide a lot of that.

But bank lending isn’t the only way to go for innovative SMEs.

So I’d like to pay tribute to the UK’s Angel, Venture Capital and Public Market investor community for the role they are playing in helping innovative companies to start up and scale up.

Xavier and his team here at the LSE are also doing a lot to help strengthen the equity ladder, with the AIM, the High Growth Segment, and the ELITE Programme.

You’re giving innovative businesses access to both finance and expertise, and that should be applauded.

And I’m pleased to say the government is doing its bit too.

The British Business Bank is working alongside private lenders and investors to support a large number of innovative companies.

It’s part of our ambition – my ambition – to make the UK the best place in the world to start and grow a business.

That’s why all the specific support for innovative SMEs I’ve talked about today is underpinned by a passionate understanding of and support for businesses of all shapes and sizes.

We’ve slashed £10 billion of red tape for business, and are committed to cutting another £10 billion by 2020.

We’re extending the doubling of small business rate relief until 2017.

We’re cutting corporation tax to the lowest level of any major economy.

We’ve lifted hundreds of thousands of businesses out of Employer National Insurance Contributions.

We’ve set the highest ever permanent level for the annual investment allowance.

We’ve got R&D tax credits, the Patent Box and Entrepreneur’s Relief.

We’ve got tax schemes like the Enterprise Investment Scheme to encourage individuals to invest in small growth companies.

And the Enterprise Bill, currently before Parliament, will create a new Small Business Commissioner to give SMEs a stronger voice.

I was at Davos last month, where all the talk was of a future in which successful companies would be lean, agile, innovative and fast-growing.

Well, when I look in this report and look around this room that’s exactly what I see.

That means you are the future not just of British business, but of the global economy.

It’s a big weight to bear, but I’m sure you can take it.

The work you’re doing really is inspiring.

And I’m very pleased to say that you’ve got a Business Secretary and a government that’s going to support you every step of the way.

Thank you.

Below is the text of the statement made by Sajid Javid, the Secretary of State for Business, Innovation and Skills, to the House of Commons on 2 February 2016.

I beg to move that the Bill be now read a second time.

On my Christmas reading list was a book by Labour’s policy adviser, Andrew Fisher. I am not going to throw a copy at the hon. Member for Wallasey (Ms Eagle), because I am sure that she already has a copy of her own.

In his book [he says]:

“The sole focus of economic debate today seems to be about what leads to economic growth.”

“Why”, he asks, “are we so obsessed with economic growth?”

In the blurb, the shadow Chancellor called it the best thing he has read in years. On the Government Benches we know why sensible people are obsessed with economic growth: it means more jobs, it means prosperity, it lifts people out of poverty, it pays for our health service and our schools, and it allows us to invest in the future of our nation.

We know that growth is not created by politicians or by civil servants. It is not delivered by Whitehall diktat, or by printing money, or by creating an ever-expanding public sector.

Economic growth comes from one thing and one thing alone.

Successful private businesses.

The role of Government is to create an environment in which businesses can thrive. So, while Labour’s policy chief dreams of handing taxpayers’ money to trade unions so they can buy out companies, this Government are taking action to back British business.

We’ve cut corporation tax and red tape.

We’re devolving the power to cut business rates and have doubled small business rate relief.

We’ve lifted nearly half a million employers out of National Insurance contributions.

We’ve supported more than 30,000 companies with Start-Up Loans.

And we’ve just launched a 5-year programme to help British businesses make the most of export opportunities around the world.

All this work is paying off.

In 2016, Britain is home to more private businesses than at any point in history.

Almost 5 and a half million of them.

Over the past 8 years more than 600,000 people have made the courageous decision to become self-employed, many in highly skilled professions.

But I want to do more.

Because, for my sins, I am obsessed with economic growth…

That’s why I’m proud to have introduced the Bill that’s before the House today.

The Enterprise Bill will strengthen the UK’s position as one of the best places in the world to start and grow a business.

It will cut the red tape that too often strangles growth.

It will support investment in the skills that British businesses need to be competitive now and in the future.

And it will help deliver the economic growth and security that benefits every single one of us in this country.

Deregulation and Sunday trading

Let me turn to deregulation.

According to the British Chambers of Commerce, regulations introduced by the last Labour Government cost British businesses almost £90 billion. No doubt this contributed to Labour’s great recession, destroying thousands and thousands of jobs across the country. That is a staggering burden for any employer, but it is a particular problem for Britain’s millions of small businesses, because when people are running their own company they do not just have one job: they have to be a manager; they have to be an accountant; they are in charge of human resources and procurement; they have to issue and chase invoices, source new suppliers and arrange marketing and advertising.

All that on top of the day job.

There are not enough hours in the day as it is.

And the last thing you need is the government on your back, weighing you down with petty rules and regulations.

One way in which we certainly do help businesses is through further deregulation. That is why in the last Parliament we scrapped £10 billion of Labour’s red tape. We have already committed to scrapping another £10 billion between now and 2020.

But business owners have told us that the actions of regulators are just as important as the content of regulations.

So this Bill will extend the deregulation target to include statutory regulators.

And it will increase transparency, with a new annual reporting requirement for regulators subject to the growth duty and regulators’ code.

It will also extend the hugely successful Primary Authority scheme to give more businesses access to reliable, consistent regulatory advice.

This will save them money, and give them the confidence they need to invest and to grow.

The Enterprise Bill will also end the “Whitehall knows best” approach to the regulation of Sunday trading.

We are a One Nation government and we want to see the benefits of economic growth being felt in every corner of our country.

But no two parts of our great nation are identical.

The needs and wants of a small rural community in the South West may be very different to those of a bustling city in the North East.

And the people living and working in those communities understand them far better than any MP or civil servant sitting in a comfy London office.

So we will introduce amendments in this Bill to allow local authorities to decide whether to extend hours in their areas.

Central government will not be dictating how to use this power.

The decision will be entirely local, reflecting local preferences, shopping habits and economic conditions.

If the people of Bromsgrove or Barking say they want to see longer Sunday opening hours, who are we here in Westminster to stand in their way?

Small Business Commissioner

Any of our friends in the press gallery who have spent time freelancing will be all too aware of the problem of late payment.

I’ve heard of one writer who has said he hasn’t been paid for copy he filed two years ago.

But the most shocking aspect is just how common this is.

In my six years as MP for Bromsgrove I have been contacted by many dozens of local business owners who have been pushed to the brink by one thing…

The failure of larger corporations to pay up on time.

When it comes to late payment my department is leading by example.

We pay more than 95% of invoices within 5 days, and more than 99% within 30 days.

But many organisations are less scrupulous, including some in the public sector.

The average British small business is owed almost £32,000 in overdue invoices.

It’s a huge sum.

For many, it can be the difference between success and failure.

Between keeping going for another year and throwing in the towel.

But it’s not easy for a small business or sole trader to challenge a larger firm.

You might not be happy, but you need the contract.

You can’t afford to bite the hand that feeds.

It’s not right, it’s not fair, and this Bill will do something about it.

We are establishing a Small Business Commissioner with a remit to handle complaints by small businesses about payment-related issues with larger businesses.

The commissioner will also have the resources to give general advice and information to assist small businesses with supply relationships and direct them to mediation services.

It’s not just late payment of invoices that’s a problem.

As we’ve seen all too graphically with the recent flooding, it’s absolutely vital that insurance companies also pay out quickly.

Doing so helps small businesses to help themselves, getting them back on their feet.

Yet this doesn’t always happen.

Unnecessary delays by insurers can spell the end for vulnerable small businesses, hitting employees, suppliers, and the wider community and economy.

So this Bill will create a legal obligation on insurers to pay up within a reasonable timeframe.

Apprenticeships

Insurance can protect many of a business’s assets from floods, theft, or fire.

But at any company, the most precious asset isn’t its bricks and mortar.

It’s not stock in the warehouse.

It’s not even money in the bank.

It’s the skilled, dedicated workforce without which no business can succeed.

Developing and growing our skills base is the key to unlocking increased productivity.

It’s the key to raising living standards, and driving that all-important economic growth.

That’s why the government has committed to 3 million new apprenticeships by 2020.

We’ve also introduced a new apprenticeship levy on the very largest employers to help pay for them.

The Enterprise Bill will build on this success.

It will introduce apprenticeship targets for public sector bodies in England.

It will protect the ‘apprenticeship’ brand.

Unscrupulous providers will not be allowed to offer shoddy training, undermining businesses and letting down apprentices.

And I am proud to say that the Bill will create an Institute for Apprenticeships.

An independent employer-led body, the institute will regulate the quality of apprenticeships, and see that standards are driven by the needs of employers.

As well as quality assurance and approval functions, the institute will also have an advisory role on funding allocations for each apprenticeship standard.

And we will be introducing amendments to give employers genuine control of apprenticeship funding through digital accounts as part of the digital apprenticeship service.

Together, these measures will make it easier than ever for young people to access vocational training.

And, just as importantly, for businesses of all sizes to develop the skilled workforce they need to innovate, to compete and to grow in the years ahead.

Business rates

Of course it’s much easier to achieve that growth if the taxman isn’t hovering over you at every turn.

I’ve already talked about how we’ve slashed corporation tax, ending years of punishing entrepreneurs for their success.

But this isn’t the only tax issue facing Britain’s high streets.

It’s often said that small business owners are ‘working for themselves’.

But because of flaws in the business rates system, entrepreneurs can sometimes feel like they are working for their local authority.

We have started to tackle this by capping business rate rises.

And we know the appeals system also needs reform.

So we are working with ratepayers to develop a modern business-focused approach to local taxation.

This Bill will further reduce the burden on businesses by applying the government’s ‘tell us once’ policy to business rates.

And it will put in place legislation to pave the way for better information-sharing between local government and the Valuation Office.

Pubs

Now, allow me to turn to pubs. I’m sure we all agree that local businesses are the heart of the communities they serve.

And that nowhere is this truer than in the great British pub.

I assume that’s one type of business that Hon and Rt Hon members of all parties will be familiar with.

The Small Business Enterprise and Employment Act, passed in the previous Parliament, required the creation of a Pubs Code.

When enacted, the Pubs Code regulations will make life a little fairer for more than 12,000 tied pub tenants across England and Wales.

We have just completed a consultation on these regulations and will publish the final version in time for the code to be in place from the end of May.

Many responses to the consultation raised an issue concerning the market rent-only option, or the so-called ‘MRO’.

Specifically, they said that the eligibility of a tenant to choose MRO at the point of rent assessment should not be contingent on the rent being increased.

Now, good government is all about listening and responding positively.

Clearly this proposal would have had an effect we did not intend.

So I’m happy to announce that we will be accepting the argument regarding MRO.

Members in the ‘other place’ tabled amendments to the Enterprise Bill on this issue.

Obviously we now accept their intent, and we will be tidying them up during the committee stage.

Government-owned businesses and spending

The Opposition have a renewed enthusiasm for seizing control of the means of production, distribution and exchange. I think it is fair to say that Conservative Members do not share that enthusiasm, but we are committed to delivering the best possible value for money from those assets where the taxpayer retains an interest.

We are committed to delivering the best possible value for money from those assets where the taxpayer retains an interest.

Last May the Chancellor announced plans for a new company, UK Government Investments Limited (UKGI), to better manage taxpayer stakes in businesses across the economy.

This Bill contains a provision on UKGI, ensuring the necessary funding powers are in place so it can carry out its vital work.

That will include overseeing the sale of government assets in a way that will benefit the taxpayer.

And that will include the sale of the Green Investment Bank (GIB).

Established in the last Parliament to address a failure in the market, the GIB has demonstrated to the wider world that investment in green projects makes good business sense.

In fact that bank has proved so successful that it has outgrown the need to be financed by the taxpayer.

Moving the bank into private ownership will give it access to much greater volume of capital, mobilising more investment and getting more green projects financed.

The Enterprise Bill contains provisions that will ensure this move to the private sector can take place effectively and transparently.

This will mean the GIB can continue to go from strength to strength delivering the ambitious green business plan it has.

It is that expertise and that business plan that private investors will be buying into.

As the name suggests, green investment is what the Green Investment Bank does.

It is what has made the bank such a success.

No sensible investor would look to change that.

To address concerns raised in the ‘other place’, GIB will create a special share.

This will ensure that its green mission is guarded by an independent party once the bank is sold.

And the share will be put in place without legislation, to ensure we can move the bank to the private sector.

Mandating this in legislation is entirely unnecessary, and unlikely to work.

Finally, this Bill will bring the public sector into line with private sector best practice on exit payments.

Too many public sector fat-cats are currently handed 6-figure pay-offs when they leave a job, often little more than a reward for failure.

This is an insult to the hardworking taxpayers and business owners who finance them.

The Enterprise Bill will end this practice.

Conclusion

Mr Speaker, when Napoleon called Britain a nation of shopkeepers he meant it as an insult.

I see it as a badge of honour.

I grew up above the family shop.

I saw for myself how hard my parents worked, day and night, 7 days a week, to make their business a success.

It takes a special kind of dedication to build something like that from scratch and keep it going for 30 years or more.

And before becoming an MP I spent two decades at the other end of the business spectrum, working for some of the world’s biggest companies.

So for as long as I can remember I’ve been surrounded by people who have created, they’ve managed and grown successful private businesses.

And when they create businesses they create jobs.

They create prosperity.

They create opportunity.

Businessmen and women are the heroes of Britain’s economic recovery.

And whether they’re running an international corporation from Canary Wharf…

…or running a one-woman start-up from a kitchen table…

…they deserve our respect and they deserve our support.

This Enterprise Bill gives them all that and more, and I commend it to the House.

Below is the text of the speech made by Sajid Javid, the Secretary of State for Business, Innovation and Skills, at East Wintergarden, Canary Wharf, London on 4 February 2016.

I’ve had the privilege to live and work in different countries and cultures all around the world.

And I’m not exaggerating or being trite when I say that the UK is, by far, the best.

It’s the most open, the most tolerant, the most diverse in every way.

My parents had very little when they left Pakistan for Britain.

This nation has given them so much.

It gave them a place to start again.

The opportunity to work hard and be rewarded for it.

The chance to make good on that most basic of ambitions.

To secure for your children a better, more comfortable life than your own.

So I have a lot of love for my country, and I never take it for granted.

But I’m not blind to reality.

I know things are far from perfect.

That the playing field is far from level.

And that equality before the law, equality on paper, does not guarantee fairness in the real world.

I first noticed it when I was a kid, in a Bristol playground, when I saw that people who looked like me were treated differently by some people.

Called different names, told different things, presented with different expectations.

Today, 40-odd years later, it’s impossible to deny that our tolerant, diverse, open society still has a long way to go.

Just look at the statistics.

Only 6% of MPs are from ethnic minority backgrounds, compared to 14% of the people they serve.

More than half of FTSE 100 CEOs went to private schools, even though only 7% of Britons do.

Not even a third of Britain’s local councillors are women.

Young black men are more likely to be in prison than in a top university.

And if they do make it into higher education, they can expect to earn 23% less than their white counterparts after graduating.

The first Race Relations Act was passed 4 years before I was even born.

But after half a century of equal opportunities legislation, race, class and gender still play an immeasurable role in people’s life chances.

And even if we could click our fingers and eliminate, overnight, all the explicit and unconscious bias in society, it wouldn’t be enough.

So much in our society depends on networks, on experience and on expectations.

On knowing people who have been there and done that.

On having someone pushing you in the right direction, telling you what is possible rather than what’s not.

It’s the kind of support that many people in this country take for granted.

But for too many of us, it is still sadly lacking.

And that’s why UpRising is so important.

Because it creates those networks.

It provides the mentors that more privileged individuals have always had access to.

It gives young people a positive message, the support and encouragement that has too often been denied them because of who they are or where they come from.

Above all, it gives them the confidence to go out there and fulfil their potential.

To follow their dreams rather than limit them.

And that’s not just morally sound, it makes good economic sense.

As Business Secretary I know that the job descriptions of tomorrow have yet to be written.

But I do know for sure that, if Britain is going to remain competitive, we will need our workforce to be diverse, innovative, flexible and mobile.

And that’s a perfect description of UpRising’s alumni.

I’ve been particularly impressed by the Emerging Leaders Network (ELN).

It reflects, far better than the House of Commons or the City boardroom, what modern Britain is all about.

And I was delighted to hear that many ELN members have set up their own companies.

A nice boost for the long term economic plan!

So I’d recommend to any aspiring young leader that they become a part of this network.

And I’d urge all the organisations here tonight to support it.

Because I know what a difference it can make when you find the right champion, the right mentor, the right inspiration at the right time.

I know it because I was lucky enough to find 3 of them myself.

I was born in Rochdale, but I grew up in Bristol in a place called Stapleton Road.

A tabloid newspaper – one based in a tower just over there! – once dubbed it “Junkie Street”.

They said it was the most dangerous road in Britain, “a moral cesspit”.

So when I was doing my O-levels and thinking about what to do next, my school was very clear.

I should leave at 16 and go get a low-paid, low-skilled job.

Not because it was the best thing for me, or because I wasn’t clever enough to do A-levels.

But because that’s what kids from Stapleton Road did.

We didn’t do A-levels.

We didn’t go to university.

We certainly didn’t set our sights on the FTSE 100 boardroom or the green benches of Westminster.

In the end I had to change school in order to be allowed to carry on with my studies.

And it was at my new school, the brilliant Filton Technical College, where I met the first of my great mentors.

A guy named Stan.

Stan taught economics, and he was great at it.

But he didn’t just teach.

He inspired.

People raised eyebrows when I announced I was thinking of going to university.

Voices all around me were saying I should quit while I was ahead.

Leave school at 18 and get a job in an office somewhere.

They said there was no point applying to university, I’d only be disappointed and dejected when I got turned down.

That people like me didn’t go into higher education.

Not Stan.

He encouraged me, he supported me, he wrote me references.

Above all he made me believe in myself, gave me the confidence to apply and to succeed.

So, thanks to Stan, when I was 18 I packed my bags and headed off to university.

The first Javid to ever do so.

And that was my first great UpRising.

I loved Exeter University, thrived there.

I made good friends, lifelong friends.

I studied hard, I had fun, I learned more about myself and more about the world.

But after nearly 3 years, when I started thinking about what to do next, the naysayers surfaced once again.

I’d become fascinated by international finance…

I wanted to go to London and work for one of the big city banks.

And people told me not to:

“Don’t bother applying Saj…”

“People like you don’t work in the Square Mile…”

“You’ll only be disappointed…”

And in many ways they were right.

I applied to all 5 of the major British merchant banks.

I was rejected by every single one!

I remember an interview at Rothschilds, I was full of excitement.

I walked into the room, and was faced with a panel of 7 old, white men in pin stripe suits.

It was the living, breathing embodiment of the old boys’ network!

One of the first questions they asked – after whether I’d gone to a private of state school – was what my father did for a living.

So I said “He used to drive a bus, now he runs a little shop selling women’s clothes”.

The panel didn’t so much answer as make a noise: “Ewww….”

And at that point I realised I probably wasn’t going to get the job!

Fortunately there were some more enlightened minds around, and I got a job with Chase Manhattan on Wall Street.

It was a brilliant place to work, mostly because of my boss, an American woman named Cindy.

And she was my second mentor, the next person I have to thank.

She showed me the ropes, she invested a huge amount of time in my career.

She wanted me to do well and she made sure I did.

When people ask how I got to be a vice-president of Chase Manhattan at the age of 25, I can answer with 3 words: “Because of Cindy”.

So that was my second great inspiration, and my second great UpRising.

Now I’d always loved politics, I have my dad to thank for that.

And by 2005 I was thinking about switching careers.

About becoming an MP.

A Conservative MP.

And yet again those voices came whispering back.

“It’s the Conservatives, Saj, they’re the whiter than white party…”

“They’ve been around since 1834, they’ve only got two BME MPs and have never had a single Muslim one…”

“People like you don’t get selected…”

“Know your limits, don’t overreach, you’ll only be disappointed.”

By now I was getting used to ignoring such advice!

I found a wonderful association in wonderful constituency.

And in May 2010 I had the honour of becoming the Member of Parliament for Bromsgrove.

A constituency that’s more than 95% white!

I was as shocked as anyone!

I remember driving home after the count, I turned to my wife and said “Laura, in your wildest dreams did you ever think I’d actually become an MP?”

And she looked at me and said: “Darling, you’re not in my wildest dreams.”

Received wisdom for new MPs says you should keep your head down, learn the ropes, find your way around.

Park any thoughts of promotion until you’ve clocked up a couple of terms on the back benches.

And the usual suspects were there once again, warning that people like me shouldn’t be too ambitious.

But the third person I have to thank saw things differently.

You might have heard of this one, he’s called George.

George Osborne.

He gave me my first real break in government when, in 2011, he invited me to become his Parliamentary Private Secretary.

A year later I joined his ministerial team at the Treasury.

And I continued working with him right up until I joined the Cabinet in 2014.

So he was responsible for my third great UpRising.

I’m still in touch with Cindy, I saw her last year.

I don’t know what Stan’s doing now, or even if he’s still with us.

If anyone at Filton knows where he is I’d love to thank him in person.

And as for George… I hear he’s doing quite well!

I can honestly say that if I hadn’t stumbled across Stan, Cindy and George when I did, I wouldn’t be standing here today.

And I am absolutely committed to making sure that the next generation don’t have to rely on being that lucky.

Now I know the world of politics is a pretty partisan place at present.

The dividing lines between right and left are starker than they’ve been for some time.

And it’s certainly not fashionable for an MP to praise a member of the other team.

But you know what?

Some things are bigger than party loyalty.

That’s why I cannot praise Rushanara Ali highly enough for her work with UpRising.

Rushanara, thank you so much, what you’re doing is just incredible.

And that’s why I was delighted to see the Prime Minister recruiting David Lammy to lead a review of perceived racial bias in the criminal justice system.

Last weekend you will also have heard the Prime Minister saying that he wants to tear down barriers of race, class and gender at our top universities.

In 2014 just 27 black students entered Oxford University out of an intake of more than 2,500.

And only 1 in 10 of the poorest white working class boys enter higher education.

That’s why we’re introducing a new transparency duty for universities.

It will highlight those universities where representation of ethnic minorities and those from disadvantaged groups are low.

And it will help schools, colleges and higher education institutions identify where more work needs to be done.

Of course, such challenges aren’t limited to the education system.

So tonight I can announce that we’ve asked Baroness McGregor-Smith – Ruby to her friends! – to lead a review of the issues faced by businesses in developing BME talent, all the way up to executive level.

Ruby has been there and done that.

Born in Northern India, raised in West London, she has worked her way up to become CEO of a £2 billion company.

She’s seen for herself the challenges that young BME people face.

She knows all too well how your background can be a barrier in too many workplaces.

And she’s shown us all how it’s possible for an Asian woman to succeed in modern Britain.

Ruby is an inspiration, a role model, and I wish her all the very best.

Because we have a claim to be the most successful multiracial, multifaith democracy on earth.

But our success isn’t enough if there are young people who don’t feel like there’s a fair chance for them.

Take that guy in the video we just saw.

He could see the towers of Canary Wharf looming over his estate.

But they may as well be on a different planet for all the contact he had with the people who worked inside them.

You shouldn’t look at people like me or Rushanara or Ruby and say it’s amazing that we’ve succeed in spite of our backgrounds.

You should be asking why more people with our backgrounds haven’t made it this far.

Antoine de Saint-Exupéry, author of the Little Prince, once wrote that:

Building a boat isn’t about weaving canvas, forging nails, or reading the sky.

It’s about giving a shared taste for the sea.

We can ban discrimination.

We can pass legislation.

We can guarantee equal rights.

But that alone is not enough.

If we’re going to deliver the true equality that Britain’s disadvantaged young people deserve, we can’t just open the doors.

We have to let them know they are open.

We have to give them the confidence and the means to compete with their more privileged peers.

We have to give them a shared taste for the sea.

So I applaud the work being done by UpRising to make that happen.

And I’d urge everyone here tonight, and everyone across the country, whatever their politics, to play their part in making the UK a fairer, more equal place.

One where everyone can find their own Stans and Cindys.

One where what you can do matters more than what you look like.

Where everyone has the chance to experience their own UpRising.

Because the UK is the best country on earth, and its young people deserve no less.

Thank you.

Below is the text of the speech made by Sajid Javid, the Financial Secretary to the Treasury, to the Euromoney Annual Islamic Financial Summit on 11th February 2014.

Thanks Mushtak.

I’m very glad to be here this morning…

And to be able to speak about an issue that is – in fact – very personal to me.

53 years ago, my father – a young man called Abdul-Ghani…

Left the Punjab – Pakistan – to find work here in the UK…

First as a cotton mill worker…

Then as a bus driver…

Before – eventually – setting up his own business.

And what my father’s career taught me…

Was that the UK is a country where foreign workers or businessmen or businesses can come…

And if they work hard…

And if they invest their time and their energy…

And – if they have it – their money…

They can both contribute to – and benefit from – a strong economy.

But before I became an MP…

I did something different to my father…

Which was to spend twenty years…

First for Chase Manhattan…

Then for Deutsche Bank…

Travelling out of the UK…

And working in emerging markets.

And what my career taught me…

Was that in a global business environment…

If the UK wants to remain the centre of the financial world…

It needs to keep exploring – and engaging with – fast growing economies.

And that’s what I want to talk to you about today.

First, I want to talk about why the UK – and this city in particular….

Is the centre of the financial world.

Second, I want to talk about why we view Islamic finance as such a key market in this City’s future…

And finally, I want to talk about the steps the UK Government is taking to ensure that this country can become a hub for your sector.

Success of UK as a financial centre

So why – or how? – has the UK established itself as such a good location for Islamic finance?

This isn’t something you can decide to do overnight.

London has always been – for a number of reasons…

Some of them historic…

Some of them geographic…

A global city.

And as modern Islamic finance started to develop and grow…

Our city has grown with it.

By leveraging our existing assets;

Like our common law legal framework…

Our advantageous time zone…

Our deep pool of structured finance expertise…

We’ve turned this country into a place very well equipped to deal with what you do.

We’ve created one of the most advanced regulatory and tax environments in the world to provide a level playing field for Islamic finance.

All the major banks in the UK provide Islamic finance products and services in one form or another…

We have 6 fully Islamic banks.

And we’ve also got all the support networks in place that any major market player needs…

Like legal or accounting or consulting firms.

And the expertise they provide…

Coupled with the benefits of our common law framework…

Mean that the majority of cross-border Islamic financial contracts reference the law of England and Wales.

In fact, almost every international Islamic contract will touch London – or a London-based firm – in some way.

So we’ve already established ourselves as a location where the Islamic finance sector knows there are networks that understand its needs…

Understand its customs…

And understand the laws that govern it.

Growing Market

But simply because we have that network in place now…

Doesn’t mean we can be complacent…

And believe we’ll remain the best place for your sector.

Because – as you’ll all no doubt be hearing over the course of the conference – Islamic finance is undergoing huge and exciting changes…

The Islamic finance sector is growing faster than traditional banking.

Islamic investments are set to grow to £1.3 trillion over this year.

And 10 of the top 25 growth markets in the world have large Muslim populations, with rapidly expanding Islamic financial sectors.

Of course, if you want proof of the importance and the relevance of Islamic wealth…

You only have to look at the skyline of this city.

In the east, where the cranes of DP World are building one of Europe’s biggest ports.

In the south, where the Shard – Europe’s tallest building – was funded by Qatari investment.

In the West, where Battersea Power Station is being refurbished – thanks to £400m of Investment from Malaysia.

And – of course – in the North, where Arsenal – one of the top teams in the world’s most watched football league – play their home games in the Emirates Stadium.

And all that investment in all those projects unlocks jobs, and it creates growth in the city.

Those projects and those buildings also serve as a clear, physical reminder that Islamic finance is becoming an even more important part of global finance.

And here in the UK we want to make sure we can keep engaging with it.

And keep working with it.

So we’re taking constant action to keep up with it.

Action taken so far

Many of you will be aware of the action we’ve taken already.

Many of you – in fact – will have been at the World Islamic Economic Forum here in London last year….

And I’m sure those of you that were, will agree it was a real success.

It was the first time the Forum had been held outside the Islamic world.

And it saw attendance by nearly 3 000 delegates from over 120 countries.

There were 46 Ministers…

And 16 Heads of State or Government, including the UK Prime Minister.

It was at that Forum, that David Cameron made a number of announcements, including:

Our intention to issue a sovereign sukuk…

And our commitment to opening up new forms of student loans for Islamic students…

And new forms of start-up loans for Islamic entrepreneurs

The conference also saw the announcement by the London Stock Exchange of a new Islamic index…

Which uses some of the most advanced techniques on the planet to screen financial ratios, and enable investors to identify opportunities with lower volatility.

In short: it means that this city will be the best place to identify Islamic finance opportunities…

And the best place to give investors the tools they need – in accordance with Islamic principles – to take advantage of them.

Last year also saw the formation of a UK Islamic Task Force…

The launch of London’s first Shariah-compliant Underwriting Agency…

And the launch of a UK Government insurance action plan…

Which commits us to developing London’s expertise – and to grow London’s market – in commercial Islamic insurance.

Things we are going to do

Of course, all of those actions represent a strong start…

But launching new policies or new taskforces or new services is one thing.

The real proof our commitment will come in making sure that those policies and those taskforces and those services help London to reach its full potential as the world centre of Islamic finance…

And – in turn – for global Islamic markets to reach their full potential.

So I’d like to spend my last couple of minutes updating you on where we’ve got to with some of that work.

First, our announcement on the sovereign sukuk.

The market has long made the case for a sukuk issued by the UK Government.

And many of you will know that this is something the UK Government has looked at the possibility of doing before.

Now, due to a hurdle or two, it has never quite happened…

But through pragmatism – and through political will – I’m very pleased to say that we’re now in a much better place to overcome those issues…

And I expect issuance to take place in the forthcoming financial year.

Following an open competition, at the end of last month…

We appointed HSBC and Linklaters as external advisors to assist us in this work.

I have to say, the strength of the competition for those roles was remarkable…

And serves as testament to just how far the industry has developed and just how much expertise now exists both here in London and abroad.

We anticipate that issuance will take place by way of syndicated offering…

And that closer to the time of the transaction we’ll be seeking to include additional syndicate members to help us bring it to market.

I’m confident that this Sukuk issuance will deliver significant benefits both for the UK and for the Islamic finance industry:

First – it should prove that the concept works, and demonstrate that the UK has established both a legal and regulatory framework that puts Islamic finance on a level playing field with conventional finance.

Second – having a top credit issuer like the UK issue Sukuk should move Islamic finance into the mainstream, and encourage its acceptance as an asset class by those who may not have considered it previously.

And third – It will demonstrate – quite clearly – that the UK is a country that is open for business, and whose Government welcomes trade with all parts of the globe.

This is – I think – the most exciting development in this area for a long time, and I’m really looking forward to working hard and seeing it through.

Another exciting development has been the work we’ve taken forward– on Islamic student and start-up loans.

Last year’s announcement on this was – for me – incredibly important.

Fellow British Muslims shouldn’t feel unable to go to university because they can’t get a Student loan – simply because of their religion…

Nor should they feel unable to start a business because they can’t get a start-up loan – simply because of their religious practices

Of course, I also believe – and this Government agrees – that a Muslim in Britain shouldn’t feel unable to buy a home because they can’t get a mortgage…

So I’m glad to be able to announce that – from today – the rules for the Government’s Help to Buy scheme have been amended…

So that providers of Home Purchase Plans – which are a Sharia compliant alternative to a mortgage – can benefit from the scheme too.

That action – on student loans, on business loans, on home loans – shows that we are embedding Islamic friendly processes into our everyday financial systems.

The final area I’d like to update you on is the work of our Global Islamic Finance and Investment Group.

This group was – again – announced at the WIEF last year.

It’s chaired by my colleague and friend Baroness Warsi…

Its members include Ministers, Central Bank Governors and Islamic bank CEOs.

And its purpose is to increase our engagement in this area internationally

Work is already well underway by Baroness Warsi to identify some of the greatest global experts and practitioners in this field – both from industry and from Government…

And her vision is for a group that bring together key public and private sector expertise…

Who can consolidate existing work…

And develop a set of high level recommendations for the future.

These might be about building things…

Building trade links…

Investing in the building of new infrastructure…

Or they might be about knocking barriers down…

Barriers like lack of skills…

Or shortages of long-term investment products.

So let me tell you this.

We are in this for the long-haul.

And I hope the announcements we made last year…

And the progress we’re making on those announcements…

Show very clearly, just how important this is to the UK Government.

We’re under no illusion that there are many challenges – both domestic and international – still to be tackled.

We have to increase awareness…

We have to build up depth.

We have to build up liquidity and tenor in capital markets.

But we want to be at the centre of the work which helps Islamic finance reach its international potential…

And we’re the perfect place to do that.

First, Islamic finance is a faith based form of finance, originating in countries with majority Muslim populations…

But the UK is showing how it can develop in a country with a Muslim minority, and within a secular legal framework.

Second, London is the world’s financial centre, providing the core hub for the intermediation of capital across borders.

Every other major and minor financial centre is linked to the UK like no other…

So – working with our global partners, in Dubai, in Bahrain, in Malaysia, and beyond – we can integrate Islamic finance into global capital markets and create an Islamic finance market that never sleeps.

As I said at the outset, I know…

From my working experiences…

That the UK has to keep looking at emerging markets, and future global trends…

If we want to maintain our place in the world.

And I know from my father’s working experiences…

That this is a country which welcomes and rewards those people…

That want to contribute to – and benefit from – its economic growth.

We want you to play a part in our growth.

Just as we want to play a part in your growth.

And I’m sure that by working together, we can achieve both those aims.

Thanks for listening.

Below is the text of the speech made by Sajid Javid, the Financial Secretary to the Treasury, to the Council of Mortgage Lenders lunch on 4th April 2014.

I’m really pleased to have the chance to speak to you all today.

Now, you’ll know better than most that the dream of home-ownership is of real personal importance to millions of Britons.

I think it’s always been part of our nation’s psyche.

And I think our job, as a government that wants to support hard-working people, is to make home-ownership possible for as many people as possible.

So today I want to talk about:

– some of the issues we as government – and you as lenders – have faced over the last few years

– some of the action we’ve both chosen to take over the last year or so

– and some of the challenges I think we’ll face in the years to come

I’d like to say first though that it is encouraging to talk to you at a time when the market is showing signs of improved health.

The number of transactions this January was 30% higher than twelve months previously.

Mortgage rates – particularly at low LTVs – remain low.

And we’ve begun to see falls at higher LTVs too.

And I think the availability of mortgages at higher LTVs is of real importance.

I appreciate though, that some observers have been concerned by the pace of the change in the market, particularly on house price rises in certain areas.

And these are concerns that the government both recognises, and understands.

But I think it’s important that we put these recent changes in the context of the last few years.

Six years ago, this country went through the world’s largest banking bailout.

And that bailout – of course – had a knock on impact on the mortgage market and instigated a period where first time buyer sales were at half their long-term level, deposit requirements grew, and mortgage rates remained high despite bank rates being at record lows.

And this lack of mortgage finance was feeding through to construction too, with builders consistently citing it as a key factor in the low levels of house building.

Of course, nobody felt the impact of this more than aspiring home-owners, and I would have – particularly young – people coming to my constituency surgery worried that while the dream of their parents’ generation was to pay off a mortgage, the dream of their generation was to get a mortgage.

And it was in that context that government and builders and lenders had to work together to intervene in the market.

First through the NewBuy Ssheme in Spring 2012, which helped make high LTV mortgages available for new build properties.

And then in June 2012, when – with the Bank of England – we launched the joint Funding for Lending Scheme to make loans both cheaper and more available.

But while that scheme was effective at bringing about more price competition at lower LTVs there remained a persistent problem around higher LTV lending.

And Help to Buy – in particular the mortgage guarantee part of the scheme – was designed to tackle that.

I always think it’s worth reminding people that 95% mortgages have been a feature of the UK market for decades.

I know they were the way that I and many of my friends, some of my Ministerial colleagues too, took their first step on the housing ladder.

But after the great recession they more or less disappeared.

At the start of 2008 there were over 750 mortgage products available at 95% LTV.

But a year later – at the start of 2009 – there were 3.

And this was locking thousands of people out of home ownership.

People with steady jobs – who could afford the repayments on a mortgage – but who struggled to save up for the large deposits required.

The Help to Buy mortgage guarantee has bought these products back into the mainstream. And it has been a success.

Last week we published figures showing that over 17,000 people have already bought a home through the equity loan and mortgage guarantee schemes.

And that data – very pleasingly – showed that the vast majority of those people are first-time buyers, buying outside of London and the South East.

It was also good to see that the scheme has been supporting responsible lending, and that the average cost of a house bought under the Mortgage Guarantee – which is £148,000 – and the average cost of a house bought under the Equity Loan scheme – which is £203,000 – are both below the UK average house price.

Again and again, with Help to Buy and with the other schemes, we’ve relied on support from and the cooperation with the mortgage lending industry, the people sitting in this room today.

You’ve carried out a huge amount of work.

You’ve demonstrated a great degree of flexibility.

And we wouldn’t be where we are today without your help.

So I wanted to take this opportunity – on behalf of government – to say a big thank you for everything you’ve done.   But I also wanted to take this opportunity to make something else absolutely clear.

The government doesn’t see these mortgage interventions as part of a new ‘business as usual’.

We’ve taken exceptional steps to address an exceptional situation.

And we understand the arguments made by some, that as the mortgage market normalises many of these measures will no longer be appropriate.

That’s why – for example – we’ve shifted the focus of the Funding for Lending Scheme onto business lending.

And that’s why we will keep monitoring the trends in the market so we can make sure that our policies continue to have the right impact.

It’s especially important that we keep monitoring the impacts of our policies because as you’ll all know the world of mortgages doesn’t stand still.

We’ve got the Mortgage Market Review rules coming into full effect later this month, which I know have been a huge area of focus and work for industry, and I’m sure the last movement of the MMR Jab will go smoothly!

Beyond that, the next year will no doubt throw up more new challenges and decisions.

And there are two obvious ones on the horizon that I’d like to discuss quickly.

The first is the implementation of the Mortgages Directive.

Now, I’ve been clear about my views of the merits of this directive.

I’m not convinced of the benefits of these regulations to UK consumers or to UK businesses.

And that’s why our approach to implementing these will be to – wherever possible – minimise the disruption they cause, which will be very much in line with our wider priority of reducing regulations on business.

The second, is that we’ll have to consider the best way of managing the exit from the mortgage guarantee.

As you’ll know, we’ve always been absolutely clear that this is a three year scheme, but I am aware that some in the industry, including the CML, are concerned about the end of the scheme creating something of a ‘cliff edge’.

We do understand these concerns.

But there are mechanisms to adjust the scheme parameters, which we’re confident will help to smooth the transition, and we’ll make a judgement about how best to use those flexibilities according to the market conditions at that time.

So that is something of a whistle-stop tour through the issues we’ve faced, the changes we’ve made, and two of the challenges yet to come.

I know that everyone will be eager to eat but I’d like to leave you with this.

I’m incredibly grateful that myself – and my colleagues at the Treasury have been able to work so closely with you, through what have been some difficult years.

And I think that between us we’ve been able to take steps and introduce measures that will continue to make the dream of home ownership a reality for thousands more people.

You’ve played an incredibly important role in our long-term economic plan to produce sustained growth for the people of our country.

And I’m certain that if we continue to work closely together and if we continue to be honest and frank with one another, then we’ll be able to deal with any further challenges that come our way.

Thank you.

Below is the text of the speech made by Sajid Javid, the Secretary of State for Business, Innovation and Skills, at the Private Business Awards on 30 September 2015.

It was great to hear that litany of British businesses successes.

But Charlie, when you said that “everyone” needs a Tangle Teezer hairbrush. Are you sure you meant everyone? I should add that the 1 haircare product that I do use is also made here in the UK. Mr Sheen.

I know that a couple of years ago the Chancellor stood here and talked a bit about his personal experience of private business. How he grew up watching his dad running the family firm. A firm that employs hundreds of people, turns over millions of pounds, and sells its designer wallpaper right around the world. My early exposure to private business was rather different. The clothes shop my dad ran, for the most part, never had more than 7 employees – him, my mum and, during the school holidays, me and my 4 brothers. That’s why I know more about 1970s ladies fashions than any other male MP. As for exports. Well, I think we once sold a skirt to someone in Wales.

But whether you’re running a small fashion retailer in Bristol, or an international wallpaper designer on the King’s Road.

Whether you’re making folding bicycles or folding ballet pumps.

Whether you’re a kitchen-table start-up or a centuries old family enterprise.

You all face the same challenges when you’re running your own business:

• you’re highly exposed to the ups and downs of the economy
• a new product line could grow the business if it works, or bring it crashing down if it fails
• one late payment from a major client can wreak havoc with your cash flow
• it’s rarely easy to find the expert advice you need to help your business expand
• and even if you’ve got a great idea, finance from sceptical banks can be hard to come by
• you can’t even rely on Dragon’s Den, as Shaun Pulfrey found!

But despite all the barriers, despite all the challenges, the people here tonight have come out on top.

This room is filled with successful businessmen and women. In brewing, retailing, manufacturing, publishing, even corn-popping, you know what it takes to reach the top.

You know how many obstacles you have to overcome.

And you know the scale of the challenge that British businesses faced just 5 years ago:

• the worst recession in almost a century
• the biggest budget deficit since the Second World War
• the world’s largest bank bailout
• a nation saddled with debt and an economy struggling to grow

When we came to power, in 2010, we knew that Britain couldn’t have a sustainable recovery without a thriving private sector.

And that’s why we’ve been working tirelessly to support business leaders like you.

Now I know this evening is all about what private businesses have achieved, and I don’t want to be accused of stealing your thunder.

But as Ruby just talked so convincingly about the importance of self-promotion, I’m sure you’ll forgive me for telling you a little bit about what we’ve been doing to help!

• we’ve cut red tape and regulation, giving you the flexibility and freedom to run your companies the way you want to run them
• we’ve cut corporation tax, so you can invest more of your profits in continued success
• we’ve introduced a new employer National Insurance Contribution allowance, lifting 450,000 employers out of NICs altogether
• we’ve created a £1.2 billion package to put a 2% cap on increases in your business rates

British Business Bank programmes are already supporting £2.3 billion of finance to 40,000 smaller businesses.

UKTI is helping you access new markets overseas. Only this month I was in China and India, where British private companies are doing just that.

The Start-Up Loans programme has provided entrepreneurs with more than 30,000 loans worth well over £155 million.

And the Business Growth Service has brought together a huge range of advice and expertise to help you expand.

Combining dedicated, dynamic entrepreneurs with a pro-business, pro-growth government has really delivered results.

• employment is up – in the last 5 years, we have created more jobs than the rest of the EU put together
• inflation is down
• the British economy is growing faster than any of our major rivals
• the number of small and medium-sized companies that are exporting just keeps on going up

But we’re not about to put up our feet and say “job done”.

I know that businesses like yours have massive potential for further growth, but surveys show that a shortage of skills and finance are hampering that.

So from next April we’re abolishing employer national insurance contributions on apprentices under the age of 25, making it easier than ever for you to take on and train the next generation of talent.

In January we’ll permanently increase the Annual Investment Allowance.

Not just doubling it, or event trebling it, but raising it by massive 700% so you can spend more on the equipment you need in order to expand.

We’re rolling out Growth Hubs across the country, helping you access support where and when you need it most.

And then there’s the Enterprise Bill, which started its passage through Parliament last month.

The bill will cement the UK’s position as the best place in Europe to start and grow a business.

It will cut red tape, reform business rates, make it easier for small businesses to resolve disputes, reward entrepreneurship, generate jobs, boost wages and offer people opportunity at every stage of their lives.

Because this is a government that stands behind you, not in your way.

A government that is unashamedly pro-business, and believes that successful businesses are an asset to be treasured, not a problem to be dealt with.

When I was asked to speak at tonight’s award ceremony, I didn’t hesitate to accept.

Not because of the excellent catering, or because of the quality of the company – although it is of course a pleasure to spend the evening with Charlie!

I wanted to join you here because tonight is all about celebrating private business.

And that’s something politicians simply don’t do enough.

As we’ve already heard, the vast majority of British businesses are in private hands.

They employ millions of people, pay billions in tax, generate over a trillion pounds of revenue.

Yet, too many Business Secretaries have overlooked the private business sector in favour of the more glamorous listed companies. The big names and bright lights of Paternoster Square and Wall Street.

But all businesses start life as private businesses.

Without you there would be no IPOs, no flotations, no stock market.

And without you we wouldn’t have some of Britain’s biggest, best, most dynamic and most exciting companies.

It’s been said that while good companies meet needs, great companies create markets.

And when I look at the list of nominees here tonight I see a list of great companies who have done just that.

So let me be very clear – this is one Business Secretary who appreciates private business.

Who understands the challenges you face, the support you need and, above all, the contribution that you make.

And that is why I’m here tonight.

• because successful companies should be applauded.
• because entrepreneurs should be saluted.
• because private business deserves to be celebrated.

Good luck to all the nominees, congratulations to all the winners, and have a great evening.