(1 day, 5 hours ago)
Commons ChamberFive Lib Dem Lords a-leaping. That is all it took for the Liberal Democrat party to throw every British business under the bus and expose them to the unimaginable liability of infinite tribunal payouts. It is hard to think of a more anti-growth, anti-job measure. On Monday, the Liberal Democrat spokesman was against, on Wednesday they were for and goodness knows where they will be tomorrow. Does the Minister agree that British business would have an entirely fair case to dismiss the lot of them?
The hon. Member seems to have lost the plot, frankly. Let me just point something out to him: what was average growth under the Tories? It was 1.5%. What is it under Labour? It is 2.2%. Which is higher? It is higher under Labour than the Tories. Average employment in the UK under the Tories was 73.8%. What is it under Labour? 75%. Which is higher? It is higher under Labour. Average inflation under the Tories was 3.2%. Under Labour, it is 1.8%—better off under us. I will just say on rights that we do not create a healthy and wealthy society if we ignore the rights of workers.
Lyndon B Johnson said the first rule of politics is to learn how to count. The Government lost the vote in the House of Lords last night on the unemployment Bill because 144 of their own peers did not want anything to do with that Bill. One Labour peer has already resigned to join the exodus to Dubai. Tony Blair would never have brought forward this Bill because he understood the importance of growth. Will the Minister now accept the sensible compromise passed in the other place last night and today give British employers and workers the certainty they need for business to grow?
I can count; the hon. Member cannot. Let me remind him: growth under the Tories was 1.5%, and growth under Labour is 2.2%. Which is higher? It is higher under Labour, isn’t it? Why did we lose the vote last night? Because of 25 Tory hereditary peers. Why on earth would that be? Why do we think they might not be willing to support Labour? Look, it is absolutely clear that it is business that builds economic growth, but we cannot create a wealthy nation if we do not tackle poverty, and we cannot tackle poverty unless we grow the economy—just like a prosperous business cannot be built on the backs of the workers, and that is what we will never do.
Labour’s steel strategy was originally promised in spring 2025, but yesterday we learned from a written ministerial statement, snuck out without Ministers coming to the House, that the strategy will now not be published in 2025 at all—it is more likely to be spring 2026. We have no steel strategy after 18 months, there is no sight of the US tariff agreement on steel that the Prime Minister claimed to have on 8 May, and no deal with the Chinese owners of British Steel. Will the Minister give the sector the Christmas present that it wants and publish the steel strategy?
It is a bit of a cheek, isn’t it, the Conservatives coming and talking about a steel strategy when they had absolutely no strategy and did not even choose to go and visit some of the steelworks that we are talking about. There will be a steel strategy. The Under-Secretary of State for Business and Trade (Chris McDonald) has been having discussions with trade unions and industry, both downstream and the producers, and we will be producing a comprehensive steel strategy very soon. I am happy to deal with the tariff issues if there is a little time later.
(2 days, 5 hours ago)
Commons ChamberThank you, Madam Deputy Speaker. It is always a pleasure to see you in the Chair.
We have heard from Members from across the House who understand a fundamental truth: that the hospitality sector is the cornerstone not only of our economy but of our society. It is a great strength of our parliamentary system that we all represent unique districts that are all, in one way or another, replete with high streets and hospitality businesses—pubs, restaurants and hotels—which we all wish to support. Members on both sides of the House have observed the importance of binding our communities together, giving people a warm place to stay—a refuge from loneliness—and keeping our high streets vibrant. Those are places where life happens.
As we have also heard, hospitality performs a vital and arguably unique role in providing the next generation with that vital first step on the career ladder. I imagine that many of us had our very first experience of the world of work—that priceless exposure that helps us become world-ready—in retail or hospitality. I certainly did, and we have heard many other such examples. The sector does that precisely because it is a feature, not a bug, that it provides flexible seasonal work that allows young people to earn their first wage, combined with other responsibilities or opportunities, and, in so doing, to learn the important dignity of labour.
As we have heard from my right hon. and hon. Friends, pubs, hotels and restaurants in particular are hurting as a direct result of the Chancellor’s choices, not just in last year’s Budget but once again in this year’s Budget, which was delivered from the Dispatch Box just a few weeks ago. More than a dozen venues from my South Downs constituency have contacted me in the last 24 hours alone, having heard about this debate. Ruth and Martin at the Cricketers in Duncton described to me how their rates are going up by £4,500 to £5,000 a year—that is money that they do not have. The Fox Goes Free in Charlton has been a public house, continuously serving the community, for over 400 years. Like every pub, it makes a huge contribution. Its business rates bill will increase by more than £13,000 next year. The House should bear that in mind when Labour Members talk about how they have introduced permanently lower business rates. That is a laughable idea. I have heard similar stories—and worse—from the Murrell Arms in Eastergate, the Half Moon Inn in Northchapel, the Labouring Man in Coldwaltham and the Onslow Arms in Loxwood.
Tom, the landlord of the Kings Head in Hedon, heard on Budget day that business rates would be cut for businesses like his. Instead, the rateable value of that pub, which provides such an important service to the people of Hedon and the surrounding villages, has gone from £9,000 to £32,000.
My right hon. Friend is exactly right. I would not want to incur wrath by accusing anybody of misleading the House, but that is exactly the same story that I have heard from the Bridge Inn in Amberley, the Star and Garter in East Dean, the Bricklayers Arms in Midhurst and the Black Horse Inn in Byworth. That surely cannot be a coincidence; these cannot be isolated examples of those “permanently lower” business rates—
Of course I will give way. I look forward to hearing about how one should understand that statement about the “permanently lower” business rates that this Government have introduced, of which we cannot seem to find an example.
Anna Dixon
Perhaps the hon. Gentleman would like to come and walk with me down the high street in Saltaire, where property valuations mean that many businesses will have lower business rates in absolute terms. Has he explained to his local pubs that that property revaluation has been hanging around for many years, but his Tory Government did nothing to implement it? That is the main reason why some of his pubs might be experiencing increases—it is due to property valuation, not business rates.
I hear the hon. Lady’s point, and I am glad she has found some examples—I note that neither in her intervention nor in her earlier remarks did she go so far as naming any of them, and I will happily take another intervention if she would like to do so. I have named many examples. The revaluation exercise on pubs is not some long-delayed exercise; it is a routine, frequent timeframe that the Valuation Office Agency goes through. This is not something that has been pent up for many years; it is just the process of revaluation.
When it comes to the rubber hitting the road of how much business rates are being levied on pubs, and how much cash will leave those stretched businesses that are struggling with all the different costs, what matters is the net effect of revaluation, this Government’s removal of the retail, hospitality and leisure relief that the Conservative Government put in, and of course the ongoing rate multiplier.
Every pub and hotel that I have spoken to in my rural constituency bears out precisely the figures from UKHospitality and the British Beer and Pub Association —we have heard about that many times today, and I know that they ran drop-ins earlier today for Members across the House. Tom Richardson at the Three Moles in Selham explained to me how the turnover basis of assessing rateable values has combined with the cost headwinds that this Government have amplified—I will be so kind as to imply that they did not all happen from 1 July 2024. Nevertheless, the choices that the Government have made, in particular the change in the national insurance rates and the changes to thresholds on national insurance, have enormously pushed up the cost of employment. On top of that, businesses are still waiting for the promised reduction in energy prices, whether for electricity or heating oil, because those prices have more than doubled in some cases.
Tottington Manor Hotel in Henfield has to find nearly £50,000 extra due to the changes that this Government have made to employment costs. It is no surprise—we heard this again and again from colleagues this afternoon—that pub and hotel owners are at the end of their tether. Nobody should want to preside over such a series of choices. One landlord told me that they have not been able to draw a wage from their pub for the last six months. Another told me how she was working seven days a week, 16 or 17 hours a day, just trying to keep the pub open.
As we heard from many colleagues, the cost of hiring staff has become so prohibitive that owners are having to cut back. They are not able to hire, support or sustain staff, and they are taking more and more upon themselves, stretching their working day and taking on more tasks, creating one of the doom loops in which, it is sad to say, this Chancellor so specialises.
We heard that from many colleagues who made contributions this afternoon, including my hon. Friend and near neighbour the Member for Isle of Wight East (Joe Robertson), who spoke about the challenges on the island, particularly with seasonal work, and about how young people are hurting and how that is costing all of us in the country.
My hon. Friend the Member for North Dorset (Simon Hoare) said that this Government are awash with policies, plans and visions, but words butter no parsnips and they do not provide the jobs that we need—least of all the Employment Rights Bill, which, as it comes down the line, will really hurt and disincentivise family businesses, with which the sector is replete.
My hon. Friend the Member for Hinckley and Bosworth (Dr Evans) talked, as did others, about the cumulative effect of measures—tax rises, national insurance increases, higher energy costs and more red tape—rather than there being one single axe falling on the heads of businesses. We should listen to small enterprises when they say that it feels like the Government are not on their side. It is no surprise that pub after pub, hostelry after hostelry, is erecting a sign on the door saying, “No Labour MPs here”. I remember that the Minister said that he had not seen one of those signs, so I trust that people in his constituency will take that as a personal challenge to ensure that one such sign is brought to his attention in the very near future.
My hon. Friend the Member for Gosport (Dame Caroline Dinenage) said that this Government are doing that most terrible of things: preventing young people from getting on the job ladder through their first chance of work. The Government weigh down precisely the sorts of businesses that do such a good job of providing those opportunities, and that is difficult.
My constituency neighbour, my hon. Friend the Member for Bognor Regis and Littlehampton (Alison Griffiths), talked about the tourism economy. To all the challenges and headwinds that have come about because of the Chancellor’s choices, we can add the bed tax, which will increase the cost for anyone holidaying in the UK. It will deter people from enjoying the wonderful vistas of Bognor Regis, Littlehampton or the South Downs, and simply encourage people to go to other countries on holiday, following in the wake of the many young people mentioned by hon. Friend the Member for Hinckley and Bosworth, who are leaving this country, such is the dearth of opportunity.
My hon. Friend the Member for South Northamptonshire (Sarah Bool) talked about the degree to which the hospitality and pub sector is already over-taxed, and my hon. Friend the Member for Bridgwater (Sir Ashley Fox) made the really important point that all the burdens of family businesses fall back on families.
I am afraid to say that we are seeing nothing less than a full-frontal attack on seasonal work, and we see that no more so than in the unemployment Bill that was before the House this week. Like King Canute, this Government are legislating to outlaw seasonality and the rhythms of the tides. If a seaside café hires a student to wait on outside tables in the glorious sunshine, Labour wants the café to be forced to offer the student the same hours once the shutters come down in the autumn. It will mean the demise of strawberries and cream sellers in Wimbledon fortnight.
The Government’s plans will even mean the death of Father Christmases and assistant elf helpers in shopping centres across the nation, because there is little demand for a Christmas elf in January, February or March. This is bureaucratic madness, yet Ministers press on, deaf to the cries of those who would most benefit from the choice—[Interruption.] Labour Members do not like what I am saying, but they do not have an answer. They should know by now that you do not protect workers by bankrupting employers; you do not support our high streets, communities, pubs and restaurants by taxing them into submission.
We Conservatives understand business. Unlike those in the current Cabinet, many of us have worked in businesses and enterprises ourselves. We stand with the risk takers in this country who create wealth, not the bureaucrats who seek to destroy it. That is why our motion supports seasonal, flexible and part-time working. We will take 250,000 high street businesses and pubs out of business rates entirely, paid for by the welfare reforms that the Government does not have the backbone to push through, and we will repeal all of the job-destroying measures in Labour’s unemployment Bill.
We back the engines of growth in our economy—the providers of jobs. This Government seek to push them to the wall. I commend this motion to the House.
(4 days, 5 hours ago)
Commons ChamberOrder. Colleagues should note that the debate will have to conclude by 7.55 pm, so only a couple of Back-Bench Members will get in. A speaking limit of eight minutes will apply to Back Benchers. I call the shadow Secretary of State.
Two weeks ago, the Chancellor stood at the Dispatch Box and delivered a Budget that contained not a single measure to support growth. Today, in moving the motion to disagree, the Minister has signed the warrant for a war on jobs. She is at the Dispatch Box representing the Government, but everyone knows that it is the former Deputy Prime Minister, the right hon. Member for Ashton-under-Lyne (Angela Rayner), who is calling the shots. We discovered this morning that Labour Together is already auditioning for the Prime Minister’s replacement. Perhaps the Minister has an outside chance at the job, but my money is probably more on the right hon. Member for Ashton-under-Lyne. Perhaps the Labour party could have its first female Prime Minister just before the Conservatives have our fourth. Given all that job insecurity, it is no wonder that Labour Members seem so keen on employment rights.
This is not a Bill for employment rights; it is a charter for a jobless generation. Thanks to measures in the Bill, thousands of young people will struggle for opportunities because the rungs of the ladder have been sawn off. Since Labour entered office, 144,000 payrolled jobs have been wiped out. Manufacturing, the oil and gas sector, construction and hospitality are all unable to make ends meet due to high energy and employment costs. The unemployment rate has been higher every month of this Government. Half the jobs lost belong to the under-25s.
I will happily give way if the hon. Member wants to talk about the jobs lost in his own constituency.
David Pinto-Duschinsky
Will the hon. Member acknowledge that employment under this Labour Government is higher than it was under the last Conservative Government, with an average of 75%? Will he therefore apologise for his comments?
Under the Conservative Government, we improved the number of people in work and unemployment fell to a record level. Since the current Government have taken office, unemployment has been higher every single month. Half the jobs lost belong to the under-25s. Does anyone want to talk about the youth unemployment rate under this Government? It is now 15%, and the number of young people not in education, employment or training has gone up by 25,000 on their watch—before the impact of this disastrous Bill.
The Government claim to support workers, but their first legislative achievement will be to make more young people unemployed. How could any Member of the House possibly support that? So, who is the Bill really for? As I have said before, the clue is in the text: it mentions maternity rights just three times, but it mentions the word “union”—no Labour Members have declared their interests—478 times. It includes: the union right to roam; scrapping the turnout threshold on union strike ballots; more paid time off for union reps; and automatic deductions of union political funds. It also orders businesses to hand out Government-written pro-union propaganda.
Strikes will become far more common. But don’t take do not take my word for it—[Interruption.] The Secretary of State is chuntering from a sedentary position, but perhaps he would like to listen to his colleague the Health Secretary, who just last week said that he had “had it” with the unions and that
“the last thing patients need this winter is strike action”.
Back in July, the Health Secretary was citing the silent majority of doctors who did not vote for strike action. My colleagues in the other place merely request that a strike ballot requires a turnout of 50% of the workforce. By rejecting Lords amendment 62, the Minister is allowing minorities to shut down hospitals, educational establishments and public transport while the silent majority of members are ignored.
We should take a moment to welcome the fact that the Government have U-turned on day one rights. After months of relentless campaigning, and a complete clear-out of departmental Ministers, the Government finally listened. There is no shame in that—I told them it was unworkable, and business told them it was unworkable—it is just a shame that it took so long. Just hours before the U-turn, the Prime Minister’s official spokesman was telling journalists that the Government would overturn all attempts to water down day one rights. A Prime Minister without a backbone who does not know his own mind has caused a year of uncertainty for employers and workers alike.
Mr Connor Rand (Altrincham and Sale West) (Lab)
On that point, will the hon. Member give way?
Mr Rand
The shadow Secretary of State speaks of uncertainty for workers. I gently point out that Conservative Ministers promised more than 20 times to deliver an employment Bill, and having broken their promise to working people, perhaps he would like to talk a bit more about that and about the constituents in insecure work he speaks to, for whom his Government did nothing, while this Government act.
I say respectfully to the hon. Member that if acting is to raise unemployment, to cost young people their jobs, to ensure that employers are not hiring and to have the worst graduate market for a generation, then bring that on. If that is what he came here to do, I would be surprised at that.
(1 month, 1 week ago)
Commons Chamber
Kate Dearden
Strikes were a failure of the Tory Government who had stopped listening and, to be frank, had stopped working, so I will not be taking any further interventions from the hon. Gentleman.
We want to create a modern and positive framework for trade union legislation that delivers productive and constructive engagement, respects the democratic mandate of unions and works to reset our industrial relations. Nonetheless, we recognise that this issue has generated debate, which is why the Government have tabled an amendment in lieu that will require the Secretary of State to have regard to any effects of the introduction of electronic balloting on the proportion of those entitled to vote in industrial action ballots who actually do so. We have previously committed to aligning the removal of the threshold with the establishment of e-balloting as an option for trade unions. This amendment gives statutory effect to that commitment and makes it explicit in the underlying legislation. In having regard to the effects of e-balloting, the Government will monitor and assess the practical impacts of e-balloting on participant rates and the 50% threshold.
To conclude, I urge hon. Members to support the Government’s motions before the House today, including our amendments in lieu, which are part of a package that strengthens rights and reflects the value we place on fair work. We have listened throughout the Bill’s passage and made meaningful changes where needed, and we will continue to listen to all relevant stakeholders as we move into implementation We are committed to full and comprehensive consultation with employers, workers, trade unions and civil society. As set out in our “Implementing the Employment Rights Bill” road map, we are taking a phased approach to engagement and consultation on these reforms. This will ensure that stakeholders have the time and space to work through the detail of each measure, and will help us to implement each in the interests of all. This is a win-win for employers, employees and a more competitive British economy.
Act in haste, repent at leisure: never has that been wiser advice than in respect of this Bill. It is a rushed Bill that was half-baked when it was introduced, and has got worse since. It has failed every test of scrutiny, from the Lords Delegated Powers and Regulatory Reform Committee to the Constitution Committee, to its low-balled impact assessment.
On the day that the Mayfield report outlines the scale of the challenge that we face on worklessness, it will create generation jobless. Every family in the country will know a son, daughter, niece or nephew who cannot get work as a result. As my hon. Friend the Member for Mid Buckinghamshire (Greg Smith) reminds us, every Labour Government leaves unemployment higher than when they started, but only this Government have actually legislated for that.
The Minister asks us to disagree with all the main compromise amendments from the other place. If she wished to listen to stakeholders, now would be a fantastic moment to start. Her motions to disagree reject sensible compromises on qualifying periods, seasonal working, guaranteed hours, strike thresholds and opting in to political funds. Who will be the victims if the motions are carried today? Young people, the neurodiverse, those with a disability, female returners to work, the over 50s and former prisoners—some of the most vulnerable groups in society who deserve their chance in life, their shot at employment and a job.
Laurence Turner (Birmingham Northfield) (Lab)
Yesterday, the hon. Gentleman said the Conservatives
“will repeal those most damaging elements of the Employment Rights Bill”.—[Official Report, 4 November 2025; Vol. 774, c. 776.]
Could he inform us which elements of the Bill they will retain?
We will have our work cut out, with its 330 pages and 122,000 words—[Interruption.] Labour Members seek to hide behind measures that we support, such as enhanced maternity rights. But will the hon. Member tell me how many times the word “maternity” appears in the Bill, and how many times the word “union”—his paymasters—appears in it?
Laurence Turner
I did not realise that was a genuine offer. I do not have the ctrl+F function in front of me to do a word count, but, again, I would be interested in hearing an answer to the question I posed to the hon. Gentleman. All I will say is that, as his colleague the hon. Member for Mid Buckinghamshire (Greg Smith) said in Committee, trade union-associated MPs have been assiduous at declaring donations. I think only one Member on the Conservative side has declared an interest throughout all these proceedings; I find that utterly incredible.
I trust that you will want all Members this afternoon to declare any relevant interests, Madam Deputy Speaker, and I have none. To answer the question that the hon. Gentleman did not manage to answer, the word “maternity” appears in this Bill three times; the word “union” appears in this Bill 478 times. Follow the money, Madam Deputy Speaker.
With unemployment higher every month—[Interruption.] Listen and learn. This will be Labour’s legacy: with unemployment higher every month of this Government, it is a bleak time for those trying to find work. The independent Office for National Statistics estimates that vacancies are down by 115,000 since this Government came into office. Some 41% of those graduating in 2023 were not in full-time work 15 months later, and it is estimated that almost half the top 100 UK employers have reduced their graduate intake. In fact, graduates are competing for so few jobs that getting a job is as improbable as spotting a Labour Member who has not received a union donation.
But it is not just graduates: for many, seasonal work is the first opportunity to get a foot on the career ladder yet this Bill in its current form forces hospitality businesses or anyone who relies on seasonal workers into an impossible position. That is why we are supportive of the Lords’ compromise amendment that would allow employers who need flexibility across the calendar year to continue to have it; what could be so objectionable about that?
I refer the House to my entry in the Register of Members’ Financial Interests. The hon. Gentleman is talking about seasonal work but has he thought about the impact on young people of so-called zero-hours contracts and the pressure that puts on their being able to live a decent life and plan for the future? I was at a conference last week about mental health in the workplace, which Opposition Members are concerned about. Zero-hours contracts and flexible working are really difficult for young people, and we must address their concerns as well.
Mental health is a huge issue; across the House we would agree on that and the Mayfield report this morning is just one of many contributions to the debate. But for so many—this goes to reform of our welfare system as well—the right answer will be to be in employment, and the Mayfield report talks about creating barriers to employers giving young people a chance. There will of course be some challenges with any form of contracted employment, including zero-hours, which many find a very flexible way of combining work with study and parental or other responsibilities.
The way to try to solve that challenge across this House is not the clunking fist of regulation dictating and providing perverse incentives and maybe unintended consequences, which mean that employers do not take a chance at all on young people and they do not get that first step on the employment ladder. I understand that the hon. Lady’s concerns and contributions are well meant, but that is why it would be so much better if we approached the Bill collectively, after so many hours of debate in Committee in this place and in the other place, and if the Government showed compromise to help mitigate—not shelve the Bill, as I might prefer—some of the worst damage that will manifest itself in fewer jobs, fewer opportunities and some of the most vulnerable finding it very hard to get into work.
Rachel Gilmour (Tiverton and Minehead) (LD)
The answer to that question is the Chartered Management Institute.
Well, I am glad we have found one; I have not had any representations from it.
The shadow Secretary of State is showing how much he despises the trade union movement and ordinary working people—[Interruption.]
I must declare a financial interest with regard to my connection with the trade union movement: I am a very proud member of a trade union.
In response to what the shadow Secretary of State said about support for the Employment Rights Bill, it was a manifesto pledge and the British public voted in their millions to support the Labour party to put this manifesto pledge through in its entirety. And guess what? That is what we are doing.
I ask the Member strongly to withdraw that: I do not despise trade unions; not a single word I have ever said at the Dispatch Box indicates anything of the sort, and I would ask you, Madam Deputy Speaker, to get the Member to withdraw that comment as it is not worthy of him. I would have hoped for better form in the conduct of this debate.
I support people’s rights to trade unions—well-regulated trade unions. For 30 years, the Labour party accepted a broad consensus on the balance between the rights of workers and the rights of employers. Tony Blair never sought at any point to reopen the consensus on that balance that has served this country well, and it does no one a service to render people unemployed.
Several hon. Members rose—
I should give way to the hon. Member for Ellesmere Port and Bromborough (Justin Madders), who did so much service on this Bill.
I am grateful to the shadow Secretary of State for giving way. I am pleased that he has learned to count now; he must have improved his skills since his time under Liz Truss in the Treasury. He talked about the consensus over 30 years, but was it not his Government who introduced the Trade Union Act 2016, which did so much to damage trade union relations?
I am trying to be generous to the hon. Member, as this Bill was part of his legacy before he was so rudely fired by a bad boss without any notice.
It is not unreasonable to say that a strike must be supported by a mere quarter of workers in order to be valid. I do not think the Labour party would claim the mandate that the hon. Member for Blyth and Ashington (Ian Lavery) was talking about on the votes of merely a quarter.
Antonia Bance (Tipton and Wednesbury) (Lab)
The hon. Member is not being very clear. Does he like the pre-2016 trade union regime, which is the one this Bill takes us back to, or does he like the post-2016 trade union regime, which is the one he seems to be advocating except when he talks about the 30 years of settled consensus? Which is it, because it cannot be both?
We on the Conservative Benches seek to respect the role of trade unions, but in a flexible workplace where we see growth in the economy and—unlike what we see today—more people in jobs, rather than fewer people in jobs. That does not help anybody at all, least of all a Government who claim that their No. 1 obsession is growth. That is not an unreasonable position.
Not for the first time, I think Ministers have got themselves in a bind. The Secretary of State for Business and Trade is going around telling business groups that he is listening, but every one of them is against this Bill. From what the Health Secretary has been saying privately, it is clear that he is no fan of giving more power to militant unions to call low turnout strikes. The welfare Secretary has commissioned reports on getting people from welfare into work, and those reports talk about not disincentivising employers from hiring. Are Treasury Ministers really looking forward to the Office for Budget Responsibility next week scoring the impact of this Bill, given the independent estimates that it could shave up to 2.8% off GDP? The Chancellor likes to blame everyone from the dinosaurs onwards for her failure, but this one will definitely be on her.
The looming disaster of this Bill is the truth that dare not speak its name. It may be a triumph for the right hon. Member for Ashton-under-Lyne (Angela Rayner), but it is a disaster for Britain. It is bad for business, bad for growth, and bad for jobs. Far from furthering workers’ rights, it punishes those who want a job. We do not protect workers by bankrupting their employers. Even the Government’s allies are warning them against this Bill.
Government Members have a choice. They can stand by and watch as their Government bring into law decades-worth of economic stagnation, or they can be on the side of the young, the vulnerable and the enterprising. History will remember this moment, because when unemployment skyrockets, businesses shut their doors, and young people stop believing and stop hoping, no one on the Government Benches will be able to say that they were not warned.
I refer hon. Members to my entry in the Register of Members’ Financial Interests. I am proud to declare an interest as a lifelong trade unionist in the labour movement, which has helped me to get where I am today. Let me start by placing on record my thanks to my right hon. Friend the Member for Stalybridge and Hyde (Jonathan Reynolds), my hon. Friend the Member for Ellesmere Port and Bromborough (Justin Madders) and all those colleagues in the other place who spent so many late nights working on this Bill.
I welcome my hon. Friend the Member for Halifax (Kate Dearden) to the Front Bench. She was among the many trade union leaders who helped to develop this Bill before it came to this place. The shadow Secretary of State thinks that the Bill was cooked up on the back of a fag packet, but it took years and millions of union members and ordinary people in this country, who have faced decimation since the Conservatives’ Bill in 2016. I offer my support to my hon. Friend the Member for Halifax in finishing her job, because the House will know that this Bill is unfinished business.
I started my working life as a carer on casual terms, not knowing if there was going to be a pay cheque from month to month. It was because of a good, unionised job with decent conditions that my life and the lives of the workers I represented changed. As I toured the country in the election campaign, in every community I heard from so many who were in the same position—they wanted change, they wanted fairness and they wanted respect at work. That is why when we promised to deliver the biggest upgrade to workers’ rights in a generation, we meant it.
It is very clear from the shadow Secretary of State’s opening remarks, and from what he said as the Bill passed through the House, that the Conservatives do not want to improve working people’s lives. In fact, it is very clear from his submission today—let us face it—that he wants to water the Bill down. When he mentioned the state of tribunals, I nearly fell off my chair. I cannot believe he can say that with a straight face, after the state in which the Conservatives left our justice system. I won’t even talk about the economic mess they left us in.
Despite the fierce criticism from Opposition parties and the relentless lobbying from vested interests, I am proud to speak in this debate as we deliver nothing less than a new deal for working people. Every time we have made progress on employment rights over the last 45 years, it has been resisted. It is always easier to do nothing—to take the path of least resistance—but in each generation, it has been the Labour party that has had the courage and conviction to change lives. Maternity allowance; equal pay for women; health and safety rights; the minimum wage—Labour changed lives, and this generation is no different.
This Bill shows that Labour is on the side of working people. They will know that ordinary people are better off, and it will have an effect on their families—their children, their brothers and their sisters. They will have basic rights from day one, such as protection from unfair dismissal. I cannot believe the Conservative party thinks that in this day and age we should dismiss people unfairly. I do not understand it.
We are going to strengthen sick pay, family rights, bereavement leave and protections from sexual harassment at work. We will have a ban on zero-hours contracts, a historic fair pay agreement in social care, an end to fire and rehire, a genuine living wage and the single biggest boost to rights at work in a generation, creating an economy that works for working people. That was the promise we made to the British public, and I urge the Secretary of State to fight every step of the way to deliver it in full. The public have no patience for the Tory and Lib Dem lords who, cheered on by Reform, are standing in the way of better rights for workers and frustrating what was a clear manifesto promise. Tonight, this House will once again send the message that we will not back down.
I will not go through every Lords amendment, but I will pick out a couple of the most damaging. First, Lords amendment 23 and Lords amendments 106 to 120 would break the pledge that we made to the British people to give them day one rights. The last Conservative Government shamefully doubled the qualification period against unfair dismissal to two years and stripped workers of protections at the stroke of a pen, and now they are at it again. Government Members believe that workers deserve fairness, dignity and respect at work, and they deserve it from day one on the job. Opposition Members say that these rights against unfair dismissal will slow down hiring, so let me be clear that employers can absolutely still have probation periods for their new staff; they just will not be able to fire them unfairly at will, for no good reason.
Secondly, Lords amendment 1B would tear up protections for workers on zero-hours contracts. This Government made a commitment to provide workers with an offer of guaranteed hours, and the Lords amendment would water down that right. We promised to ban zero-hours contracts—no ifs, no buts—and that is exactly what we should do. This Bill is a promise we made to the British public. It is our duty to deliver it, and I say to my Front-Bench colleagues that I will be with them every step of the way as we do just that.
Make no mistake: the Bill is good for workers, and good for business. It is not just the right thing to do; it is the foundation for the high-growth, high-skill economy that the UK needs. Its key measures are backed by many of Britain’s best businesses, including the Co-op, Centrica and Richer Sounds. Those businesses prove that if you treat people well, you get the best out of them. They know that being pro-worker is not a barrier to success, but a launchpad to it. That is why the Bill takes the very best standards from the very best businesses and extends them to millions of workers. It is also why we say proudly that this is a pro-business and pro-worker Bill. Respected business voices, such as the Chartered Management Institute, have indicated their support for the key measures in the Bill. We will continue to consulting businesses and hear their voices, to make sure that we get the detail right.
(1 month, 1 week ago)
General CommitteesIt is a pleasure to serve under your chairmanship, Mr Stringer. His Majesty’s Opposition do not intend to detain the Committee any longer than necessary.
We welcome the Minister of State, whose feet have probably not touched the ground since his appointment, and wish him well in his endeavours to grow the economy by securing trade deals, lift people out of poverty and help to deliver the Government’s objective for growth. We are delighted that, in so doing, he is making the most of the benefits of Brexit—our freedom to determine our own trade deals. That is part of why the draft regulations are so important. Extension for another five years attracted the full support of the diligent House of Lords Legislative Scrutiny Committee—we thank it for its work, which is important in ensuring that this House discharges its job on secondary legislation properly. In this case, we are delighted to support the Government on the measure.
(1 month, 1 week ago)
Commons ChamberI welcome the team to their significant roles for the United Kingdom.
This week, the other place voted for five reasonable amendments to the Employment Rights Bill, representing a meaningful compromise with cross-party support to mitigate some of the worst of the damage caused by the Bill. As the Office for Budget Responsibility now scores the impact of that legislation, this is one of the last chances to avoid the costs, taxes and spending cuts that will result from it. Will the Secretary of State now put country before party, do the right thing by British business and accept those compromise amendments?
I am grateful for the shadow Secretary of State’s warm words. He shadowed me when I first went into my role at the Department for Science, Innovation and Technology; he was then moved here before me, so I have followed him to this role. I watch with trepidation the next reshuffle on his Benches.
The shadow Secretary of State mentions the workers’ rights Bill, which is still between the two Houses; I hope we will be reconciled as soon as possible so that it can get Royal Assent and benefit workers and businesses right across the nation. Once the Bill passes, we will, of course, undertake a period of implementation. My predecessor and the previous Deputy Prime Minister, who championed this legislation, were clear from the outset that the Bill will modernise the British workplace so that it is beneficial for businesses and for the people who work in them.
The modern economy has changed; it is different from 20 years ago. The Conservatives had the time to modernise the economy and the relationships within workplaces, and they chose not to take that—
Order. I don’t want to do this, but this is topicals, and all these Members need to get in. We did not get through the list already. You have to help me to help them.
I will save time, Mr Speaker, by not mentioning the 13 leading business organisations that have all called for certainty now—not well-intentioned future consultations on implementation, but certainty now, because jobs and the economy are bleeding out. The Secretary of State will know that even the Resolution Foundation—that wonderful finishing school for aspiring Labour Ministers—said this week that some of the measures in the Bill should not be proceeded with.
Again, the Conservatives had 14 years in which the economy was changing. They had the chance to tackle zero-hours contracts, and what did they do? Nothing. They had the chance to tackle fire and rehire, and they did nothing. They had the chance to tackle the challenges of being an app-based employee, and they chose to do nothing. We are acting to modernise the economy and the relationship out there between businesses and workers because that is what is needed. It is what workers and businesses need, and it is what this Government are delivering.
(2 months, 3 weeks ago)
Commons ChamberI call the shadow Secretary of State.
I welcome the new Secretary of State to his place, and congratulate him as well as the hon. Members for Halifax (Kate Dearden) and for Rhondda and Ogmore (Chris Bryant) on their appointments. His is a vital role in Government, and it will surely be a delight and a privilege for him to champion our hard-working, innovative businesses in Cabinet and on the world stage as President of the Board of Trade. I particularly welcome his comments that the Government’s priority must be to “double down” on growth and position themselves as
“an active partner that delivers success, supports new business and backs wealth creation.”
Where he does that, he can be assured of our support, but if that is really his view, we should not be debating this Bill today and the Government should never have brought it forward.
In fact, I well understand why Ministers may well be concerned about job insecurity and last-minute shift cancellations. After all, their predecessors, the hon. Member for Ellesmere Port and Bromborough (Justin Madders) and the hon. Member for Harrow West (Gareth Thomas), had their own Front Bench shifts today cancelled by the Prime Minister with barely a week’s notice. Apparently, that boss did not even have the decency to fire them in person, but at least they can take comfort in knowing that with the current rate of departures from No. 10, there will soon not be anyone left to do the sacking.
Sam Rushworth (Bishop Auckland) (Lab)
Does the shadow Minister understand the difference between fair dismissal and unfair dismissal?
The shadow Minister absolutely understands that. He does so and understands the implication of clause 23 from having spoken to Make UK, the CBI, the Institute of Directors, the British Chambers of Commerce and the Federation of Small Businesses, all of whom urge the Government to rethink on this clause. Business does not recognise a process that ends in a full legal tribunal, flanked by lawyers, after typically a two-year wait and lost management time, as light-touch. Legal fees alone for defending an unfair dismissal case range from £15,000 to £20,000.
Katrina Murray (Cumbernauld and Kirkintilloch) (Lab)
Does the hon. Gentleman not recognise that very few cases end up in a tribunal, particularly at a point where all due process happens? Not all dismissals are unfair.
Of course not all dismissals are unfair, but if it was not a process that ended up in court or in a tribunal, we would not be facing a backlog of 491,000 individuals with current open cases—by the Government’s own figures—and business organisations would not be citing legal fees in that order of magnitude.
One reason that so many of those cases do not end up in a tribunal is that businesses, cognisant of the loss of management time and £15,000 to £20,000 in fees, simply pay up rather than contest.
My right hon. Friend, with his experience, is exactly right. Just think about the impact on a small business of a fee of that magnitude and the length of time it takes to get justice.
What is going to happen? This is a really important point. Those on the Government Benches will be living this reality over the remainder of their term, and they will have to account for it. Businesses will be discouraged from hiring anybody without a perfect CV and a proven track record of work. Who are we talking about? We are talking about young people, people with dyslexia and related conditions, and people with a period of inactivity on their CVs—such as former prisoners seeking a second chance to go straight. Those will be the victims of that particular measure.
Labour Ministers should realise that they will be the first victims of disagreeing with Lords amendment 62. The long-standing principle here is a simple one: we should not be allowing strikes to be called when a majority of union members have not even voted, let alone voted in favour. A strike could still proceed with just over a quarter of those eligible. Opposing this amendment will guarantee that unions are held hostage by a militant minority who force strikes even when the union’s own members do not support one. We can ill afford more strikes that crush growth, prevent workers from getting to work and endanger lives, and the public will not forget the change that this Government seek to make.
Amendment 61 is a Cross-Bench Lords amendment that would maintain a consensus arrived at by the Trade Union Political Funds and Political Party Funding Committee—that only those who actively choose to contribute to a political fund opt in to do so. This is a basic principle that the Government have applied to services everywhere else in the economy, from beauty boxes, gyms and meditation apps to Netflix and newspaper subscriptions. Why should Britain’s workers not enjoy the same right? The only conceivable reason—it brings shame on anyone who votes against the amendment—is to swell the coffers of one political party.
Lords amendment 47, on the right to be accompanied, tries to finally level the playing field for the 80% of workers who are not in a union, but should have the same rights as trade union members to be supported in a disciplinary or grievance hearing. By voting against this modest but important reform, Labour is preserving what is essentially a closed shop that unions use to push people who do not want to join into doing so. We scrapped the closed shop decades ago, and no one should be bringing it back as a means of pressuring vulnerable workers into paying into union coffers.
Will the hon. Member give way?
I will happily give way if the hon. Gentleman will talk about the other organisations that will do a brilliant job of representing employees.
Well, that wouldn’t be the Tory party, would it, Madam Deputy Speaker?
What the shadow Secretary of State seems not to understand is that workers cannot turn up to a trade union and go, “I’ve got a problem. Can I join and get representation, please?”. Almost every union in this country requires a qualifying period to get the representation he talks about—the idea that this is a closed shop is just nonsense.
The hon. Member has probably wilfully misinterpreted what I said. I am talking about the right for individuals to be represented by a trade union or by a qualified professional from another domain, such as a qualified lawyer.
Will the shadow Secretary of State give way?
Of course I will give way to the hon. Gentleman—we are missing him already.
I am glad to be back.
The shadow Secretary of State just talked about legal fees for firms when it comes to defending tribunal cases. If the right to be accompanied is expanded to include lawyers, the response of firms will be, “We had better get a lawyer too”, and that will just put up costs, will it not?
The hon. Member has done a great deal of work on the Bill, and it is a great shame that he was cut short in his prime, but with respect the point is about choice for the individual. In many cases, the long-standing right will be to be represented by a trade union, but it could also be a mediator or a qualified professional in any other domain. The point is not to extinguish that choice, which is absolutely—he will know this—what the amendment would do. The Bill—from a Government who in too many domains are now tolerant of a two-tier system—creates a two-tier system for workers’ rights.
Lords amendment 1 is a typical example of where the Government do not understand or have failed to listen to businesses, particularly hospitality and seasonal businesses. What started as an attempt to ban zero-hours contracts has morphed into a chain around the necks of both employers and workers. The Government will no doubt cry about unintended consequences when the time comes, but I can tell them now that the consequences will be clear, and a cacophony of business groups such as UK Hospitality, the British Retail Consortium and the Federation of Small Businesses have explained this precisely to them. I gently say that if the Government feel so strongly about zero-hours contracts, the best way of putting their own house in order would be to start with tackling precisely those that operate in the armed forces reserves.
Lords amendment 48 would protect the countless businesses across the country that rely directly on seasonal work. From the coasts of Devon and Cornwall to Great Yarmouth, and from the Secretary of State’s and my own county of Sussex to Ayrshire, there are millions of workers employed in seasonal industries. Seasonal work often takes place in communities that are heavily reliant on tourism, both foreign and domestic, and that are competing in a competitive international market. The Government have already taken an axe to the hospitality and retail industries with the removals of relief. The amendment would be a very good way of going in some direction to support them.
In opposing Lords amendment 49, the Government are showing their commitment to ignore small business above all others. The Secretary of State says that he wants to listen to businesses, and I take him at his word, but why then oppose this amendment, which would codify precisely that? Countless small business will have a real challenge in dealing with this Bill, which is now 330 pages of red tape. Why on earth would the Government put their Members through the Lobby to oppose listening and consulting with small businesses?
We support Lords amendment 60, which has cross-party support, at the behest of millions of those who enjoy heritage railway attractions. If the Secretary of State has not yet made it to the Amberley museum, which is not that far from his constituency—[Interruption.] He knows of it? Well, he is welcome to come and visit and listen to how the volunteers who are gaining valuable experience will be affected.
I am perplexed about why the Government are so opposed to Lords amendment 46 on the protection of whistleblowers. It is genuinely confusing. Time and again Ministers on both sides of this House have come to the Dispatch Box to talk about Government scandals. We have seen brave people in organisations try to speak up and raise their concerns, only to have them dismissed. The Government claim that the Bill is about workers’ rights yet seem to have zero interest in protecting workers who try to reveal serious problems in the private and public sectors. I urge all colleagues to read that for themselves and to make up their own minds on where they think the right place to be is. Good luck to those who vote against that entirely reasonable amendment, which would protect people who do the right thing, and then have to try to explain to their constituents why they did so.
(4 months, 2 weeks ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Thank you, Dr Huq. It is a pleasure to speak under your chairmanship. I congratulate the right hon. Member for East Antrim (Sammy Wilson) on securing this last debate before the summer recess on this important topic. The UK’s internal market, forged over centuries through the Acts of Union, is the bedrock of economic prosperity. We are indeed stronger together, and the United Kingdom Internal Market Act 2020 has provided what should be a robust foundation for economic cohesion and non-discrimination.
I accept that challenges remain, and we have heard about them today. I thought the example—the illustration —of custard, visual metaphor though that was, was important. I regret the imperfections of the Windsor framework, and this Government with their reset have the potential to use their equities to significantly improve some of those arrangements in the UK internal market, should they so wish. The right hon. Member for East Antrim drew attention to the work done by the excellent Federation of Small Businesses, highlighting the very real problems and concerns.
My hon. Friend, with typical generosity, says that we are all trying to get this right. I established that that is largely true, with the possible exception of the EU itself. There are those in the European Union, stung by the wise decision of the British people to leave that awful body, who have never really accepted that decision and have made life as difficult as possible—both for this country and for the businesses described by right hon. and hon. Members in this debate.
As ever, drawing on his extensive experience in this place, my right hon. Friend makes exactly the right point. We do not have time to revisit all the imperfections of the Brexit deal imposed upon us by a recalcitrant European Union, which turned out to be a very false friend.
We should hear from the Minister, and I want to afford him as much time as possible. But my party will of course support anything that removes frictions and reunites the territorial integrity of the whole United Kingdom. We want every small business to benefit from that frictionless relationship with the rest of the United Kingdom. Our Union depends on that single indivisible approach and the sort of practical solutions that we heard about, such as trusted trader schemes and utilising HMRC’s already extensive data collection and reporting framework to improve the operation of our internal market. That should be something that every Member of this House seeks to do. The Government have given up things like British fishing for 12 years; I hope that we continue to see in return some real progress on this issue.
I thank all hon. Members, and congratulate the right hon. Member for East Antrim on highlighting the issue. With your permission, Dr Huq, I will give the rest of the available time to the Minister.
We are going to leave a couple of minutes at the end for the Member in charge to conclude.
It is a pleasure to see you in the Chair, Dr Huq. I am grateful to the shadow Minister, the hon. Member for Arundel and South Downs (Andrew Griffith), for giving me ample time to respond to the many issues that have been raised. He may be keen to take a phone call as a result of the shadow Cabinet reshuffle; maybe there is a promotion or relegation in the offing. I know that he has been keenly checking his messages all afternoon.
He is staying in place.
I congratulate the right hon. Member for East Antrim (Sammy Wilson) on securing this debate. He referred to not having a great deal of luck in applying for debates; perhaps he is right that he has not faced as much competition because this is the last day before recess. But he is also right that this is an important issue. Given the number of Members here today, there are clearly things that people wished to raise. I want to address as many of the points as I can in the time that I have. If I do not get around to all of them, I will ensure that the relevant Minister responds.
I start by stating the current position. In January, we announced that we were reviewing the UK internal market, a move that would be quicker and broader than was required in statute. We published a public consultation on the operation of the UK Internal Market Act 2020, and at the outset of the consultation the Government made it clear that they would not repeal any part of the Act, as it contains important provisions relating to the Windsor framework and the unfettered access of qualifying Northern Ireland goods to Great Britain. It is important that we have that in the back of our minds when debating these issues.
Upholding Northern Ireland’s place in the UK internal market was a key manifesto commitment, and we are determined to fulfil it. At the time, the Government stated that they were not minded to weaken the protections offered by the market access principles in the Act. Those protections facilitate the free movement of goods, provision of services and recognition of professional qualifications, resulting in real benefits for businesses and people across the whole of the UK.
We recognise, however, the concerns—and hear them again today—about how the UK internal market has been operating in practice, particularly for businesses. The Minister for Trade Policy and Economic Security, my right hon. Friend the Member for Lothian East (Mr Alexander), made a written ministerial statement to the House last week with the Government’s response to the review and the public consultation. The review made clear that businesses across all sectors strongly support the UK Internal Market Act’s market access principles to avoid unnecessary barriers to trade.
(4 months, 3 weeks ago)
Commons ChamberI call the shadow Secretary of State.
May I start by paying tribute to Norman Tebbit? He was a former Secretary of State for Trade and Industry and a great reformer who did a great deal to unleash growth in this country.
The only thing growing under this Government are the unemployment queues. Today, the Office for National Statistics revealed that the number of payrolled employees has fallen by 180,000 over the last year and 40,000 in the last month alone. Unemployment has been higher in every month since the Chancellor has been in office. In the last hour, we have heard news of another 500 job losses at Jaguar Land Rover. This is a great country with great people. When the Secretary of State talks to businesses, what reason do they give to him for unemployment rising?
It is always nice to hear from the shadow Secretary of State. First, as he knows, the Office for National Statistics workforce survey shows that the overall number of jobs is higher after a year of this Government than it would have been if the Conservatives had remained in government—there are 380,000 additional jobs. He mentioned payroll jobs. Of course, they are important; they are one key factor, as is wages, which, as he knows, have risen faster in the first 10 months of this Government than they did in the first 10 years of the previous Government. Our productivity figures have also risen, and of course, we closely monitor the impacts of technology.
The shadow Secretary of State asked what businesses say to me. They say that this Government have brought stability after the mini-Budget disaster, which he was a key part of. They say that we have brought openness to the world and are navigating a difficult trading environment better than anyone else, and they recognise that our pro-business, pro-growth measures are delivering. There was nothing like the list I just gave of problems after 14 years of the previous Government.
That answer was complacent and unsympathetic. It is the most vulnerable—those looking for their first shot, their first chance—who pay the price of unemployment.
Let us start again. Last night in the other place, the unemployment Bill was improved with sensible amendments to probation periods, a definition of seasonal workers that protects hospitality and agriculture, and provision for a consultation about the impact on the smallest businesses. Those measures have been proposed by employers, and by independent business groups such as the Confederation of British Industry, Make UK and the Federation of Small Businesses, who say that the Bill in its current form is deeply damaging. If the Secretary of State will not shelve the Bill entirely, will he at least commit to accepting those entirely reasonable amendments?
The shadow Secretary of State talks about vulnerable people. Which Government left one in eight young people not in education, employment or training, while net immigration hit 1 million? It was absolutely shameful, and we will take no lessons from Conservative Members. He talks about tackling barriers; who gave us the highest industrial energy prices in the developed world? The Conservative party. Who is dealing with that? Who has put millions into skills and training, finance, and the tools that local areas need? Those are the things that businesses want.
The shadow Secretary of State also talks about the Employment Rights Bill. I regret the Conservatives’ knee-jerk ideological opposition to it; they could have been pragmatic. The Bill was a manifesto commitment, and we will deliver our manifesto commitments in full. There are issues on which we have to get the balance right, such as probation periods and the future monitoring of zero-hours contracts, and the commitment is of course real. Pragmatic engagement would have been a more constructive way forward than this knee-jerk ideological opposition.
(5 months, 1 week ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to serve under your chairmanship, Ms Butler. As we have heard, the hospitality sector forms a cornerstone of not only our economy, but our society and community. In my beautiful Arundel and South Downs constituency—I beg to differ with the hon. Member for Richmond Park (Sarah Olney)—it binds together communities, as we come together in cafés, pubs, restaurants, hotels and even garden centres.
As we heard from my hon. Friend the Member for Kingswinford and South Staffordshire (Mike Wood), hospitality plays a disproportionate role in providing the next generation with their first step on the career ladder, offering rewarding employment and what has always been a fair and balanced offering of flexible work. It gives many people their second chance in life, as well as many people a chance to supplement their retirement.
The industry employees 3.5 million people, with the vast majority of those jobs in small and medium-sized businesses that any Government should be on the side of, and we heard wonderful examples of that from my hon. Friend the Member for South Northamptonshire (Sarah Bool). My right hon. Friend the Member for East Hampshire (Damian Hinds) discussed its impact on employment and the flexible nature of the working, and he gave his insights about the higher job satisfaction, which we also heard from others.
I look forward to the Minister’s response to the debate, and how it will no doubt obfuscate around the frankly hostile environment that this Government have created for the hospitality industry. Colleagues should listen attentively, because what it does not mention will be as revealing as that which it does. Last summer—in fact, this time last year—prospective Labour MPs toured their constituencies and the airwaves, and they promised anyone who would listen that they would not raise taxes. Just a few short months later, the Chancellor slapped a jobs tax on every single employer across the land.
Pubs, bars, restaurants and hotels now face the £3.4 billion extra cost. It was a political choice, imposed by this Government, that has almost uniquely ravaged the hospitality industry—it was a perfect storm for the industry —particularly, as we heard from many Members, through the change in the threshold from £9,100 to £5,000 a year. Apparently, that change was made capriciously by the Treasury at the last moment, when its Chancellor once again failed to get her sums to add up.
One of the UK’s leading hospitality entrepreneurs, Luke Johnson, put it best:
“It is heartbreaking that Britain’s proud record of innovation, flexibility and business success is being thrown away thanks to that old knee-jerk Labour instinct of taxing success.”
The reality is that one third of hospitality businesses are now operating at a loss because of the Chancellor’s tax on jobs. Unemployment is already rising; in fact, it is up in every one of the nine months for which Labour has been in office. Six out of 10 hospitality businesses report that they have had to take the decision that no business owner ever wants to take. We should remember that many of these are family businesses that provide employment to the local people they live and work alongside. However, 63% say they have no alternative but to reduce the hours available for staff. Kate Nicholls, the chief executive officer of UKHospitality, said that these measures
“will simply force businesses to cut jobs, freeze recruitment, cancel planned investment, reduce trading hours and, in the worst-case scenario”—
as we heard about with pubs today—
“close their doors for good.”
It is difficult to overstate the catastrophic impact that this Government are having on the hospitality industry.
Once again, I pay tribute to my hon. Friend the Member for Kingswinford and South Staffordshire for securing this important debate, to which there have been contributions from across the House. But as some Members have said, there is another iceberg on the way that this Government and this Chancellor are steering us straight towards: the trade-union written, 1970s-inspired Employment Rights Bill. No Labour Minister has ever been able to name a real business that supports it—imagine that—and I invite this Minister perhaps to do so when he winds up. The reality is that very few employers in the hospitality sector will actually be aware of the perils facing them. They will be so focused on running their business, rather than wading through 300 pages of tightly typed Whitehall speak. It is available in the Table Office right now, should anyone feel difficulty sleeping on these hot summer nights.
The Bill, just like the Chancellor’s tax measures, disproportionately impacts on the hospitality industry. It will remove the valued freedom that employers and employees have to adjust their hours flexibly. What sort of business do we think that will hit? It will hit seasonal businesses, and most hospitality businesses have a strong element of seasonality. This will force young people, the vulnerable and sometimes those with a chequered employment record out of employment.
Once again, it is even worse for pubs, because the Bill reserves a special measure for the fact that landlords, hotel owners and restaurant managers will be forced to act as banter bouncers, asking punters whose private conversations may conceivably cause any unknown offence to their staff to leave their premises. By the way, that is nothing to do with sexual harassment, which is dealt with in a separate clause, and is rightly already illegal. The outcome will be a £5 billion bill for business under the Government’s impact assessment and countless—literally tens of thousands—of job losses.
Let me be clear: even Tony Blair or Gordon Brown, a socialist in office, saw it as wise to give this sort of economic self-harm a wide berth. On top of that, if someone’s business is still surviving, and they have the temerity for it to be a private, family-owned business, they will face the family business death tax.
I do not want to pre-empt the Minister, who is a decent man. I suspect we will hear a little go a very long way. He will talk about the 40% business rate relief coming to the aid of hospitality, despite the reality that the Government have in practice more than doubled business rates bills for businesses in the sector, compared with the 75% relief on offer under the previous Government.
We may also hear about the 1p cut on beer duty—that old trope that Governments of all flavours, if we are being honest, like to trot out. But the reality—the hard truth—is that the average pub would have to sell an additional 850,000 pints a year for that 1p cut to offset the additional costs imposed on them by the Chancellor’s job tax. I do not necessarily believe that most of us are equal to that particular challenge.
We may hear of the Government’s unequivocal support for hospitality, but words are cheap. It is difficult to reconcile that premise with the Government’s actions this time last week, when they left this sector, which employs millions of people and keeps our communities and high streets alive, entirely missing in action from their industrial strategy.
The truth is that the Government have done nothing to support our hospitality businesses, which have been entirely let down and treated as cash cows by the Chancellor at No. 11. I think the Minister knows that, but he is a loyal man who is keen to keep his job at a time of rising unemployment, and it is probably being offered to many of his colleagues who are thinking of rebelling this afternoon. The truth is that the Government have removed incentives, laid out insurmountable burdens, and over-taxed our hospitality sector at every opportunity. It is a great regret, but I am glad that we have the chance, on behalf of the sector, to debate that this afternoon.