My Lords, I welcome these two orders, but I want to raise an issue that is referenced in paragraph 8 in the accompanying report from the SLSC, of which I am a member. The issue is the lower turnover test threshold of more than £1 million below which the Government cannot intervene. Why is there any lower threshold at all when it comes to protecting the public interest in the relevant sectors?
It is entirely possible that a business with a turnover of less than £1 million could in other respects be of sufficient public interest for the Government to be justified in intervening. Recent new tech start-ups, for instance, or spin-out enterprises, perhaps from a university vaccine research programme, could well have a turnover of under £1 million but none the less meet the public interest criteria.
The £1 million threshold is even more questionable when one factors in the detrimental impact of the Covid-19 pandemic on business turnover and consequently the increased vulnerability of some businesses to predatory and opportunistic mergers and takeovers. A relevant business that had a turnover in excess of £1 million and was meeting the necessary criteria for intervention at the start of the year could now have a turnover of less than £1 million because of the pandemic; hence the simple question I pose to the Minister: why have a minimum threshold at all?
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