Department for Business and Trade

Ashley Fox Excerpts

Wednesday 5th March 2025 Commons Chamber

[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.

--- Later in debate ---

[Sir Ashley Fox (Bridgwater) (Con)]

The Government were elected eight months ago with a promise to go for growth, but so far most of their policies seem designed to make life more difficult for business. Their £25 billion national insurance jobs tax is a direct assault on the businesses that create jobs. The increase in capital gains tax, the introduction of the family business tax and the family farm tax all discourage entrepreneurship.

The 1970s-style employment laws are slowing business growth and discouraging job creation. Labour’s Employment Rights Bill will increase costs to businesses by £5 billion, borne mostly by small businesses. Take day one rights. If, after less than one week, it becomes apparent that a new employee is the wrong fit for a business, a complicated process must be followed to dismiss them. Speaking as a former—though fully qualified —solicitor, I know the businesses that will be hit hardest are the ones with no human resources department. Get the process wrong, and they could be taken to court for unfair dismissal. Another example is the obligation for the employer to notify an employee in writing that they have the right to join a trade union. Is that something we would reasonably expect from the local publican, or the proprietor of a family newsagent? In what world is that really going to occur? Yet if it does not occur, those small businesses will on the hook for an additional four weeks’ salary in damages. That will have brutal consequences for very many microbusinesses and will deter them from employing people.

The Bill also establishes an advisory board for the enforcement of labour market rules. That body will advise the Secretary of State on matters relating to the labour market. It is an expensive and pointless exercise. The Secretary of State has plenty of avenues to collect advice already. There will be a complicated process for selecting members of the panel, which will consume considerable amounts of civil service time and money. The members of the board will be paid hundreds of pounds a day. This is a sham process designed to allow the Secretary of State to hand out sinecures to receive advice on strategy from his union friends that he could have got for free.

The first instinct of this 1970s-style old Labour Government is to regulate, to stifle innovation and to back the unions over business every time. We Conservatives will stand up for business and the people who make the economy work, and will continue to champion its success.