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Defence: Small Businesses

Asked by Mr Richard HoldenConservativeMinistry of DefenceTabled Answered 9 January 2025UIN 22101

The question

To ask the Secretary of State for Defence, what assessment his Department has made of the potential impact of changes to (a) Business Property Relief and (b) employer National Insurance contributions on SMEs in the defence sector.

Answered by Maria Eagle

The Ministry of Defence recognises the vital contribution that Small and Medium Enterprises (SMEs) make within the defence industry, and we have a long-standing commitment to improve our engagement with such suppliers in order to broaden and strengthen our supply-base. As individual suppliers and contractors will manage the changes to Employer National Insurance Contributions and Business Property Relief differently, it would be extremely difficult for the Department to estimate the impact this will have on SMEs in the defence sector.

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