Department for Business and Trade
Alison Griffiths Excerpts(1 day, 16 hours ago)
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Alison Griffiths (Bognor Regis and Littlehampton) (Con)
I will do my very best to reduce the comments I was going to make, Madam Deputy Speaker. I pay tribute to the Chair of the Business and Trade Committee, the right hon. Member for Birmingham Hodge Hill and Solihull North (Liam Byrne), for his very thoughtful comments, which reflect the considerations of our Committee.
Business is the lifeblood of our economy. It creates jobs, funds our public services and drives the success of our country, yet under this Government, businesses face an onslaught of damaging policies that threaten growth, confidence and livelihoods. The Government’s £25 billion national insurance jobs tax is making it more expensive to hire workers, their family business tax punishes those who drive local economies and their 1970s-style employment laws are stifling business growth. The result? The fastest rate of job losses since 2008.
Instead of supporting enterprise, this Government are actively making it harder for businesses to thrive. The budget of the Department for Business and Trade is being slashed by 6%, which means less support at a time when firms need it most. The so-called Employment Rights Bill—or, perhaps, the unemployment rights Bill—will cost the Government £1 billion, while its fair work agency could add an astonishing £6.3 billion burden. Those costs will inevitably be passed on to businesses and workers alike.
This is not just about numbers on a spreadsheet: these policies have real consequences—workers losing their jobs, families struggling with rising costs and businesses already being forced to shut their doors. The Government claim to support growth, yet their policies are driving firms into significant financial distress, with more than 632,000 businesses now at risk. That is a 32% increase in just one year.
The irony is that Britain remains an attractive place to invest. The PwC chief executive officer survey ranked us second only to the United States, but, alas, that survey took place before the Budget. A strong economy depends on strong business confidence, yet confidence in this Government’s economic management has been shattered. Businesses no longer trust that the Government have a clear strategy for growth, which the right hon. Member for Birmingham Hodge Hill and Solihull North has already mentioned.
The numbers speak for themselves. More than 200 leading hospitality and retail firms have warned that Government policies will force them to cut jobs and scale back investment. Businesses face ever-changing regulations, increasing tax burdens and a Government who appear out of touch with their needs.
Sir Ashley Fox (Bridgwater) (Con)
My hon. Friend refers to the increase in regulation. The Government’s Employment Rights Bill, which I have in my hand, is 192 pages long. Only this week, Government amendments totalling 216 pages have been tabled for this House to consider in two days next week. Does that not present any business with a vast quantity of new regulation to consider?
Alison Griffiths
My hon. Friend is absolutely right. The time that we have next week to consider this number of amendments seems wholly inadequate.
Businesses are facing ever-changing regulations and increasing tax burdens. Many have said that they were misled—duped—into believing that this Government were pro-business when their actions tell a very different story. Analysis by the Nuffield Trust has found that if the fair work agency were to increase social care workers’ wages to match the NHS Agenda for Change band 3, the cost could be as high as £6.3 billion, including an increase to the real living wage costing £2.2 billion. That is another measure in the out-of-touch Employment Rights Bill. It is as if the 32 members of the Cabinet have a very limited understanding of the private sector and of business as a whole.
Business owners, entrepreneurs and workers do not need more red tape and tax hikes. They need a Government who understand that growth does not come from the state dictating terms, but from unleashing the potential of enterprise, and they need policies that encourage investment, not deter it. Businesses in my constituency of Bognor Regis and Littlehampton are already struggling with the global impacts on their business environment, let alone the challenges at home. The day one rights given by the Employment Rights Bill give the presumption of innocence to workers and the presumption of malevolent intent to employers. The reality is that neither is correct.
The Government need to understand that when business thrives, Britain thrives. That is the only way in which we will restore confidence, protect jobs, and secure a growing economy.
John Cooper (Dumfries and Galloway) (Con)
I, too, am a member of the Select Committee.
Perhaps no other Department has an impact on the lives of so many Britons. The economy affects each and every one of us, and when the Government’s No. 1 priority is the fastest sustained economic growth in the G7, then—to use football parlance—the Chancellor is the midfield general and the Department for Business and Trade is the big striker in the opposition box. The rest of us—all of us—have a spot on the terraces, but oh dear! We have barely kicked off, and we are pinned in our own half.
Where is business confidence, given that less than a quarter of the businesses that cheered Labour on, signing a letter ahead of the election, are still waving their red scarves? One said that it now feels “duped”. What of the financial back-up? The eye-catching headline figure in the supplementary estimates is that the Department has been allocated a total funding increase of £1.8 billion, yet that money is largely earmarked for Post Office compensation. It is absolutely right and proper that the victims be compensated quickly, but there should be no pretence that the money is a shot in the arm for DBT.
Although the extra £440 million for the British Business Bank is good news, is it enough? This country lacks not for start-ups but for scale-ups, and we hear time and again that a lack of finance from risk-averse banks is the block. Scale matters. The Business and Trade Committee heard only yesterday that although work by the previous Government had created an ideal environment for the emerging technology of quantum computing, Britain has earmarked a few billion pounds for the sector—impressive, until one hears that the United States is injecting over $50 billion. The US’s R&D spend alone is perhaps seven times our total budget in this field.
No Government are ever in full control of events, and the storms of war are howling. Even as this Government’s industrial strategy is being shaped, defence is now the utmost priority. If we as a nation are not secure, we are not a nation. Wars are fought in trenches and on myriad battlefields, but they are won in boardrooms and on the shop floors and shipyards of industry. Economic growth, then, is a key arrow in the British quiver. But do these estimates give us hope for growth? Rather than confidently striking out for new global deals, Britain today looks like a cork in a storm-tossed sea—at the mercy of events, and not their master.
On a Business and Trade Committee visit to Brussels, we explored what the Government might expect of their much-vaunted reset of relations. Troublingly, Britain lacks for any clear definition of its ask beyond warm words about defence and security, yet the EU, being made up of good protectionists, already has an invoice drawn up.
We have acceded to the comprehensive and progressive agreement for trans-Pacific partnership—that is not easy to say, especially with these teeth. It covers a bloc of over 500 million people and includes countries such as Australia, Canada, Japan and Singapore, and economies that are ripe to bloom, such as Vietnam and Malaysia, in contrast to the sunset economies of Europe, which have sclerotic growth. Yet we are told that trade deals take up British GDP only marginally. We lack ambition.
Alison Griffiths
I want to follow up on my hon. Friend’s comment on international trade. Does he agree that the Government currently lack the capability to support businesses appropriately in international trade?
John Cooper
I completely agree that much more needs to be done on international trade. As I said, we lack ambition in this field, because we base so much of what we expect on previous deals. Frankly, there has never been a deal like CPTPP, the putative deal with India and the dripping roast that is a free trade deal with the US.
The Department for Business and Trade needs to step up, not be beaten before we even start. Growth is the destination that we in this House should all agree on; the path there is where the disputes lie. We are in an economic relegation zone after a dud Budget. Can the Department for Business and Trade help pull off the shock result that we all need? Britain’s got talent, and the Department for Business and Trade can boost it.
Harland & Wolff
Alison Griffiths Excerpts(2 months, 2 weeks ago)
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Madam Deputy Speaker (Ms Nusrat Ghani)
I call Alison Griffiths, a member of the Select Committee.
Alison Griffiths (Bognor Regis and Littlehampton) (Con)
Madam Deputy Speaker, I am sure you will have noticed that the Secretary of State did not answer one question, which was whether he would clarify that the final assembly and systems integration will take place in Belfast, rather than in the Navantia shipyards in Spain.
Oral Answers to Questions
Alison Griffiths Excerpts(2 months, 3 weeks ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
My hon. Friend will be aware that the Chancellor of the Exchequer recently announced £20.4 billion in investment for research and development for the next year, which will help to drive even more of the type of technological investment that she rightly champions. We are also working with small businesses to encourage them to adopt more digital technologies through the digital adoption taskforce.
Alison Griffiths (Bognor Regis and Littlehampton) (Con)
Businesses in Bognor Regis and Littlehampton are at the sharp end of the Bank of England’s business confidence survey. Unlike the Chancellor and the Secretary of State, they know that her Budget and the Employment Rights Bill are a recipe for higher prices, higher inflation, higher interest rates and higher unemployment. Is that the growth that the Secretary of State had in mind?
Jonathan Reynolds
We have had seven or eight of the same question from the Opposition Benches, and not a single answer to how they would pay for the promises that they make. We are getting on with fixing the foundations, looking to the future and improving the business environment across the board. That is why businesses in the hon. Lady’s area and mine should look to 2025 with real confidence.
Oral Answers to Questions
Alison Griffiths Excerpts(4 months ago)
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Justin Madders
I would be delighted to meet my hon. Friend. Under the “Get Britain Working” plan, more disabled people and people with health conditions will be supported to enter and stay in work, and I am happy to discuss with her how we can achieve that aim.
Alison Griffiths (Bognor Regis and Littlehampton) (Con)
The Government’s own impact assessment suggests that measures in the Employment Rights Bill could cost businesses up to £4.5 billion annually and increase the number of strikes by 54%. Does the Minister expect that legislation to enhance or undermine investor confidence?
Justin Madders
I gently point out to the hon. Lady that that represents a 0.4% increase on businesses’ total costs—a small price to pay for what the impact assessment says
“will strengthen working conditions for the lowest-paid and most vulnerable in the labour market, increasing fairness and equality across Britain. It will have significant positive impacts on workers who are trapped in insecure work, face discrimination, or suffer from unscrupulous employer behaviour like ‘fire and refire’ practices”.
If the hon. Lady does not support that, I am sure that she can talk to her constituents about why.