Question
I thank the Minister for her answers, and my thoughts are with all the staff at the Alloa store. What is happening with Poundland is the latest example of private equity being allowed to do as it pleases—the type of behaviour that, frankly, has destroyed our high streets. Both the UK and Scottish Governments need to act to stop private equity raiding our towns and then upping sticks when it has decided that there is nothing else to extract. Will the Government take decisive action, and take steps such as curbing profit shifting and tax abuse by private equity?
Answer
My hon. Friend is absolutely right to raise business owners’ responsibilities to their employees. In this case, there are 12,000 of them across the country, including many in his constituency, as well as suppliers. That is why it is right that this Government are putting pressure on the company. It has responsibilities to their employees, who also have rights, and that is why we are asking the owners to do everything they can to protect employees and suppliers. I will continue our engagements this week, because it is a real priority for us.15% vibes
Verdict: RED (14/100)
The reply responds to the first part of the question only in a narrow way. It describes government engagement with the owners of one company to protect its employees and suppliers, and promises further talks, but it does not address private equity's wider effect on towns or high streets or set out any general action. The second part, on profit shifting and tax by private equity, is not answered at all. The reply is largely vague, so the person who asked would likely need to submit a follow-up for specific commitments.
Verdict: RED (13/100)
The reply only partly answers the first question, on whether the Government will act to stop private equity extracting value from towns and high streets. It describes pressing one company's owners to protect employees and suppliers, but it is hedged and names no policy or regulatory action. The second question, on profit shifting and tax avoidance by private equity firms, is not addressed at all. The asker would likely need to follow up for specific commitments.
How we got there
| Question item | Coverage | Specificity | Rationale |
|---|---|---|---|
| Will the Government take decisive action to stop private equity raiding towns and high streets? | Partially Addressed | Hedged | The reply concerns government pressure on one specific company's owners to protect its 12,000 employees and suppliers, and promises further engagement. It never mentions private equity, towns or high streets, or any general or decisive action to curb private equity, so it addresses only a narrow case and does so in largely platitudinous terms. |
| Will the Government take decisive action to stop private equity firms extracting value from towns and high street businesses and then leaving when nothing further can be extracted? | Partially Addressed | Hedged | The reply engages with a specific company's situation and says the Government is pressing its owners to protect employees and suppliers, which touches on the concern about owners leaving workers exposed. It never addresses whether the Government will take decisive action to stop private equity extracting value from towns and high streets, and it names no regulatory or policy mechanism, so the answer is a gesture rather than a commitment on the question asked. |
| Will the Government take steps to curb profit shifting and tax abuse by private equity? | Not Addressed | Generic | No answer statement refers to profit shifting, tax, or tax abuse by private equity, so this item is not engaged with at all. |
| Will the Government take steps to curb profit shifting and tax abuse by private equity firms? | Not Addressed | Generic | None of the answer statements mention profit shifting, tax avoidance or tax abuse by private equity firms, so this item receives no response. |