(1 day, 23 hours ago)
Commons Chamber
Sir Ashley Fox
I am grateful to my hon. Friend for making that point, which I agree with. The Globe Inn is not a husband-and-wife team but a mother-and-daughter team, and those extra costs bear heavily on the business.
It is not just business rates that are going up. There is also the hated jobs tax, which we heard about earlier, and the consequences of the anti-jobs employment Bill. On paper, guaranteed hours and scheduling rules sound as though they would protect workers, but for seasonal workers whose livelihoods depend on flexibility, immediate availability and quick uptake of short-term work, the measures risk doing precisely the opposite.
Let us take some examples. Forcing employers to offer guaranteed hours after a short reference period will make businesses reluctant to take on seasonal staff at all. I know this from experience: in Burnham-on-Sea, the number of visitors who turn up very often depends on the weather. If there are two or three weeks of very good weather, businesses will need lots of seasonal workers. In this great country of ours, that could be followed by many weeks of rainy weather. What would the Minister say to employers who are contractually bound to offer work to employees who are not required because tourists are not there?
Alison Griffiths
Harbour Park in my constituency would be required to pay people, rain or shine, at times when it receives no income from visitors. Does my hon. Friend agree that this measure will cause many businesses acute hardship?
Sir Ashley Fox
My hon. Friend is correct. In fact, what will probably happen is that many businesses will offer less work. That tells us that these regulations have been drawn up by people who have never run a business. When a farm, holiday park or festival operator knows that it might be legally required to provide fixed hours even when demand disappears with a change in weather or tourist numbers, the safest option will be not to hire so many people. It should not surprise the Government when that is what businesses decide to do. Seasonal workers could see fewer opportunities, shorter seasons and more competition for every shift.
Secondly, the strict advance notice rules and penalties for changing shifts might offer security for longer-term part-time workers, but seasonal work often depends on rapid, last-minute scheduling. If a grower cannot schedule pickers until they know the fruit is ready, or an events company cannot bring in extra hands until bookings spike, they may be forced to reduce the number of workers they engage at all.
The added liability on agencies will shrink the pool of temp placements, on which many seasonal workers rely. It is natural that agencies will become far more cautious about taking on temps. No doubt some will pull out of short seasonal contracts altogether. That means fewer people will be in short-term work, fewer people will be building experience in their first jobs and fewer people will have the stepping stones to full-time employment. The Bill will act as a hammer blow to seasonal work. Employers will hesitate to hire, and workers will lose the very flexibility that makes seasonal work viable.
(9 months ago)
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.