Oral Answers to Questions

Debate between Andrew Rosindell and Damian Hinds

Monday 9th January 2017 Commons Chamber

[Andrew Rosindell (Romford) (Con)]

9. What assessment he has made of the potential effect of the increase in the national living wage announced in the autumn statement 2016 on levels of employment in the north of England.

[The Minister for Employment (Damian Hinds)]

The number of people in employment in the north of England has increased by 112,000 over the past year. The national living wage has already given 1 million people a pay rise, helping to build an economy that works for all.

[Andrew Rosindell]

I thank the Minister for his reply, but has he considered the implications of the national living wage coming in so quickly for small and medium-sized businesses, particularly those in the manufacturing sector? What would he say to those businesses that will not be able to adjust in time, or that simply will not be profitable because the national living wage is being introduced so quickly?

[Damian Hinds]

Everybody should benefit from a strong economy, but as well as introducing the national living wage the Government have announced plans to reduce corporation tax further to 17% and to increase the employment allowance, which could be worth up to £3,000 a year.